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Is supply for loanable funds equal to savings and is demand for loanable funds equal to...

Is supply for loanable funds equal to savings and is demand for loanable funds equal to investment? If so what is the proof or source?

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Answer - Yes , the supply of loanable funds indicated the savings and the demand for the loanable funds indicated the investment. The equlibrium interest rate is derived at the point where this demand equals the supply. Hence the point where S = I is also the same point. The person ready to invest will demand the loan from the bank. The person who has gathered the savings will deposit the money in bank which will be further used by bank to extend the loans. Thus proved that the above said statement is correct.

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