The loanable funds model focusses on interest rates in the short run.

Name: The loanable funds model focusses on interest rates in the short run.
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The loanable funds model primarily focuses on the long-run determinants of interest rates, such as savings, investment, and productivity growth. While interest rates can fluctuate in the short run, the model is designed to explain long-term changes in interest rates.

The Loanable Funds Model Focusses on Interest Rates in the Short