APMac Unit 4 Lesson 7 - The Loanable Funds Market (Module 29) by jclerch https://padlet.com/jclerch/lv65tl4gkc2d Financial Sector en-us 2017-01-01 17:34:43 UTC 2025-12-24 04:56:51 UTC hello@padlet.com https://padlet-uploads.storage.googleapis.com/135439946/a13f8a704c17b76ce516f05350012f67/IMG_12291_1mb.png jclerch https://padlet.com/jclerch/lv65tl4gkc2d/wish/154585022 2017-02-17 14:10:27 UTC https://padlet.com/jclerch/lv65tl4gkc2d/wish/154585022 Lesson Questions jclerch https://padlet.com/jclerch/lv65tl4gkc2d/wish/245833286 1. Can you graph the loanable funds market? 

2. Can you describe crowding out, and the effect that crowding out has on the real interest rate in the loanable funds market? 

3. Can you describe crowding in, and the effect that crowding in has on the real interest rate in the loanable funds market?
]]> 2018-03-25 14:50:34 UTC https://padlet.com/jclerch/lv65tl4gkc2d/wish/245833286 jclerch https://padlet.com/jclerch/lv65tl4gkc2d/wish/328020679 2019-02-05 20:45:23 UTC https://padlet.com/jclerch/lv65tl4gkc2d/wish/328020679 jclerch https://padlet.com/jclerch/lv65tl4gkc2d/wish/372289748 2019-07-25 15:07:36 UTC https://padlet.com/jclerch/lv65tl4gkc2d/wish/372289748 Essential Knowledge jclerch https://padlet.com/jclerch/lv65tl4gkc2d/wish/372387458 2019-07-26 13:52:25 UTC https://padlet.com/jclerch/lv65tl4gkc2d/wish/372387458 Essential Knowledge jclerch https://padlet.com/jclerch/lv65tl4gkc2d/wish/372387460 z]]> 2019-07-26 13:52:25 UTC https://padlet.com/jclerch/lv65tl4gkc2d/wish/372387460 Essential Knowledge jclerch https://padlet.com/jclerch/lv65tl4gkc2d/wish/372387461 The loanable funds market describes the behavior of savers and borrowers.

The demand for loanable funds shows the inverse relationship between real interest rates and the quantity demanded of loanable funds.

The supply of loanable funds shows the positive relationship between real interest rates and the quantity supplied of loanable funds.

In the absence of international borrowing and lending, national savings is the sum of public savings and private savings.

For an open economy, investment equals national savings plus net capital inflow.

In the loanable funds market, equilibrium is achieved when the real interest rate is such that the quantities demanded and supplied of loanable funds are equal.

Disequilibrium real interest rates create surpluses and shortages in the loanable funds market. Market forces drive real interest rates toward equilibrium.

The loanable funds market can be used to show the effects of government spending, taxes, and borrowing on interest rates.

Factors that shift the demand (such as an investment tax credit) and supply (such as changes in saving behavior) of loanable funds change the equilibrium interest rate and the equilibrium quantity of funds.
]]> 2019-07-26 13:52:26 UTC https://padlet.com/jclerch/lv65tl4gkc2d/wish/372387461 Enduring Understanding jclerch https://padlet.com/jclerch/lv65tl4gkc2d/wish/372387499 The interaction of borrowers, who demand loanable funds, and savers, who supply loanable funds, determines the equilibrium real interest rate.]]> 2019-07-26 13:52:53 UTC https://padlet.com/jclerch/lv65tl4gkc2d/wish/372387499 Learning Objectives jclerch https://padlet.com/jclerch/lv65tl4gkc2d/wish/372387523 Define (using graphs as appropriate) the loanable funds market, demand for loanable funds, and supply of loanable funds.

Explain (using graphs as appropriate) the relationship between the real interest rate and the quantity of loanable funds demanded (supplied).

Define national savings in both a closed and an open economy.

Define (using graphs as appropriate) equilibrium in the loanable funds market.

Explain (using graphs as appropriate) how real interest rates adjust to restore equilibrium in the loanable funds market.

Explain (using graphs as appropriate) the determinants of demand and supply in the loanable funds market.

Explain (using graphs as appropriate) how changes in demand and supply in the loanable funds market affect the equilibrium real interest rate and equilibrium quantity of loanable funds.
]]> 2019-07-26 13:53:12 UTC https://padlet.com/jclerch/lv65tl4gkc2d/wish/372387523 jclerch https://padlet.com/jclerch/lv65tl4gkc2d/wish/409283381 2019-11-11 02:32:50 UTC https://padlet.com/jclerch/lv65tl4gkc2d/wish/409283381 Answers to Problem Set jclerch https://padlet.com/jclerch/lv65tl4gkc2d/wish/1188625797 2021-02-10 17:23:13 UTC https://padlet.com/jclerch/lv65tl4gkc2d/wish/1188625797 Problem Set jclerch https://padlet.com/jclerch/lv65tl4gkc2d/wish/1188627349 2021-02-10 17:23:29 UTC https://padlet.com/jclerch/lv65tl4gkc2d/wish/1188627349 Lesson Introduction jclerch https://padlet.com/jclerch/lv65tl4gkc2d/wish/1189623584 2021-02-10 20:31:25 UTC https://padlet.com/jclerch/lv65tl4gkc2d/wish/1189623584