Answer to Question #149348 in Macroeconomics for qianhe

Question

What determines the supply of loanable funds?
What affect the supply curve of loanable funds and how does it change?

Answer 1

What determines the supply of loanable funds?

savings

What affect the supply curve of loanable funds and how does it change?

the interest rate affect the supply curve of loanable funds.

If the supply curve for loanable funds is upward sloping, it indicates that at higher interest rates lenders are willing to lend more funds to investors.