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This study guide covers the loanable funds market, focusing on the interaction between borrowers and savers. It explains the demand and supply of loanable funds, their relationship with the real interest rate, and factors that shift these curves (BIG DEE and FELS mnemonics). The guide also covers market equilibrium and the impact of shifts on the equilibrium real interest rate and quantity. Finally, it provides exam tips, including common question types, policy implications, and strategies for success.
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Question 1 of 11
In the loanable funds market, who are the primary suppliers of funds? 🤔
Borrowers
Savers
Governments
Central Banks