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O demand O market O interest rate O supply The source of the saving. for loanable funds is O market O supply O demand O interest rate The source of the for loanable funds is investment. O O O O interest rate rate of inflation catch-up effect loan term The_ represents the price of a loan.need help with this one

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Answer #1

Answer.)

Q1.) SUPPLY

When private individuals deposit their money in the banks, the money doesn’t just sit there until it is withdrawn. Most of it is actually loaned out.

Q2.) DEMAND

Firms borrow to invest. They need money to purchase capital goods or to increase their inventories.

Q3.) INTEREST RATE

Loanable funds have a price. When borrowers take loans from banks, they usually do not pay back the exact same amount they borrowed, but, with that, they pay a certain level of interest. The interest rate is the price of loanable funds.

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