Macro: Unit 4.7 -- The Loanable Funds Market

Hey Everyone! I'm Mr. Willis, and You Will Love Economics!

In this video, I will:
- Clearly identify what loanable funds are and how they are created through fractional
reserve banking
- Define the demand for loanable funds
- Explain the factors that contribute to the inverse relationship between the real interest
rate and quantity of loanable funds demanded
- Identify the 4 determinants of loanable funds demand
- Define the supply of loanable funds
- Explain the positive relationship between the real interest rate and quantity of loanable
funds supplied
- Identify the 4 determinants of loanable funds supply
- Use graphs to analyze how a change in loanable funds demand will impact the real
interest rate
- Use graphs to analyze how a change in loanable funds supply will impact the real
interest rate


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