Explain the loanable funds theory

Reference no: EM131972817

Question: Explain the loanable funds theory in your own words (fine to show graphs if you'd like or discuss the theory in your own words. Include the parties that are the net suppliers and demanders of loanable funds and using net supply and demand curves for funds, how the real interest rate in and economy is determined). Also discuss the respective factors that affect the supply of loanable funds and factors that affect the demand for loans funds including their expected effect on respectively the demand and supply of loanable funds.

Reference no: EM131972817

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