In the loanable funds market, the supply of loanable funds is positively sloped because the higher the real interest rate, the:

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As the real interest rate rises, the benefits of saving also increase. This is because higher interest rates mean that savers receive a greater return on their savings, making saving more attractive. As a result, savers may choose to supply more loanable funds to the market, leading to a positively sloped supply curve. Conversely, when interest rates are low, the benefits of saving are reduced, which may discourage savers from supplying funds to the market.

In the Loanable Funds Market, the Supply of Loanable Funds