Loanable Funds
Definition
Loanable funds refer to the supply of money available for lending from households, businesses, and governments in an economy.
Related terms
Interest Rates: The cost of borrowing or the return on lending money.
Investment: Spending by firms on capital goods such as machinery and equipment.
Savings: Income not consumed and set aside for future use or investment.
"Loanable Funds" appears in:
Study guides (1)
AP Macroeconomics - 5.5 Crowding Out
Practice Questions (1)
What factor could decrease the demand for loanable funds?
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About Us
About Fiveable
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Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Cram Events
Merch Shop
Crisis Text Line
Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.