Unit Four Video Summaries: Video Four

Blog Video Summaries

3/26/16

4th Video Summary

This video talked about the Loanable Funds Market.

Loanable Funds- Amount of money available in the banks for people to borrow.

Demand for Loanable Funds is downward sloping because when the interest rate is low, people demand more money to spend. A high interest rate discourgaes people from borrowing money.

Supply of Loanable Funds comes from the amount of money people have in banks. It is dependent on SAVINGS. The more people save, the more money banks can loan out.

If the government is running a deficit, then they are demanding more money to spend. Demand for Loanable Funds shifts RIGHT and interest rate goes UP or Supply of Loanable Funds shifts LEFT and interest rate goes UP. 

-JaelyNoTainted

Like Jaelyn (SPACE) Not (SPACE) Tainted

Get it?