Asked by
Mirna Ayach
on Nov 26, 2024
Verified
The quantity of loanable funds supplied is inversely related to the interest rate.
Loanable Funds
This refers to the resources or funds available for borrowing in the financial markets, used for investments and purchases.
Interest Rate
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
- Learn how interest rates affect the supply of loanable funds and investment decisions.
Verified Answer
FF
Learning Objectives
- Learn how interest rates affect the supply of loanable funds and investment decisions.