About this document
Loanable Funds Market Dynamics by luckvinoth is a document available to read on EtoBox.
The document summarizes the loanable funds theory. It explains that the loanable funds market transfers spending power from households (who save) to borrowing units like firms and the government. Saving provides the supply of loanable funds, while investment demand and government budget deficits create demand for funds. The interest rate balances the supply and demand in the loanable funds market and ensures savings is transferred to investment, validating Say
- Author
- luckvinoth
- Language
- EN