13. What factors make up the total demand for loanable funds? The total supply of loanable funds? List and define each of these demand and supply factors.
Answer: he total demand for loanable funds comes from the sum of consumer, business, and government demand for credit. Sources of loanable funds include saving by businesses, consumers and governments, dishoarding of money balances, and money created by the banking system. The interest rate tends toward the point where the supply of loanable funds equals the demand for loanable funds.