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Two Views of Interest Rate Determination

Two Views of Interest Rate Determination

Loanable funds theory explains the real interest rate through the market for saving and borrowing. The equilibrium rate is where the supply of saving equals the demand for investment funds.

9.4.8 interest rate determination: loanable funds theory and Keynesian theory Lesson

  1. Intl A Level
  2. /Economics
  3. /9.4.8 interest rate determination: loanable funds theory and Keynesian theory

Step-by-step lessons on CIE Intl A Level Economics 9.4.8 interest rate determination: loanable funds theory and Keynesian theory. Each one builds up to exam-style questions.

Lessons