Question

Explain the Loanable funds theory of interest rate.

Answer 1

Hey mate!

I am here with your answer!

In economics, the loanable funds doctrine is a theory of the market interest rate. According to this approach, the interest rate is determined by the demand for and supply of loanable funds. The term loanable funds includes all forms of credit, such as loans, bonds, or savings deposits.

Hope this will help you!

Answer 2

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begger