The Loanable Funds Market
Key Features
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Supply of Loanable Funds (SLF)
Why SLF Slopes Upward
Sources of Loanable Funds
SLF Shifters
Demand for Loanable Funds (DLF)
Why DLF Slopes Downward
Sources of Demand for Loanable Funds
DLF Shifters
Government Budget Deficit: The Most Important Scenario
Government Budget Surplus
Worked Examples
Example 1: Business Confidence Rises
Example 2: Government Deficit Increases
Example 3: Foreign Capital Inflows Increase
Example 4: Consumers Decide to Save More
Money Market vs. Loanable Funds Market
When to Use Which
The Loanable Funds Market and Economic Growth
AP Exam Tips
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Common Mistakes
Unit 4 topics
Unit 4 overview4.10Crowding Out4.1Financial Assets4.2Nominal vs. Real Interest Rates4.3Definition, Measurement, and Functions of Money4.4Banking and the Expansion of the Money Supply4.5The Money Market4.6Monetary Policy4.7The Loanable Funds Market4.8The Money Market and the Loanable Funds Market4.9Fiscal and Monetary Policy Actions in the Short Run