Financial assets or money that is available to borrow. This theory is based on the concept that corporations providing goods and services demand capital. Purchasers of goods and services provide capital. Borrowers demand loanable funds that are indirectly made available by savers who allow banks access to their assets.
Related information about loanable funds theory:
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Economists offer a simple model for understanding financial markets and how the real interest rate is determined.
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Definition of loanable funds theory: Financial assets or money that is available to borrow. This theory is based on the concept that corporations providing goods ...
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