Respuesta :
Answer:
The source of the supply for loanable funds is saving.
The source of the demand for loanable funds is investment.
The interest rate represents the price of a loan.
Explanation:
Note: The question is merged together and it is first separated before answering the it as follows:
The source of the _ for loanable funds is saving. Options are: demand, supply, market, or interest rate.
The source of the _ for loanable funds is investment. Options are: interest rate, market, supply, and demand.
The _ represents the price of a loan. Options are: interest rate, loan term catch-up effect, or rate of inflation.
The explanation is as follows:
The process through which borrowing occur is described by the market for loanable funds. In the market, what determines the supply of loanable funds is the amount of savings. The determinant of demand for loanable is the investment an individual wants to carry out.
The market is therefore market where suppliers of loanable funds and investors who need loanable funds meet. The interaction between the savings of the supplier and investment of the borrowers therefore determines the interest rate which is the price and the amount of loan.
