Unit 4 April 4

• Loadable Fund Market
• is and interest rate of 50% good or bad?
• Bad for borrowers but good for lenders
• Loadable funds market is the private sector supply and demand for loans 
• This market brings together those who want to borrow 
• this market shows the effect on real interest rate 
• Demand- Inverse relationship between real interest and quantity loans supplied 
• this is not the same as the money market