The Loanable Funds Theory Used to Explain the Level of Interest

question 46

Multiple Choice

The loanable funds theory used to explain the level of interest rates holds that interest rates are a function of the supply of:

• A) loanable funds and the demand for money
• B) loanable funds and the demand for loanable funds
• C) money and the demand for loanable funds
• D) money and the demand for money

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