- LF are money that is available in the banking system in order for people to borrow.
- DEMAND LOANBLE FUNDS: It is downward sloping because when the interest rate is low than people tend to borrow more. When the interest rate is high then people tend to borrow less.
- SUPPLY LOANBLE FUNDS IS UPWARD SLOPING.
-SIF comes from the amount of money that people have in banks and are dependent on savings.
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