Macroeconomic model reference
Loanable Funds Model
The supply of savings meets the demand for investment at an equilibrium real interest rate. When households save more, the supply curve shifts right and the rate falls; when firms want to invest more, the demand curve shifts right and the rate rises.
Theory-based models · Model choice
Loanable Funds versus nearby models
Compare Loanable Funds with nearby alternatives, local saved scenarios, data needs, assumptions, strengths, weak points, and use case.