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hey how you doing econ students question is it bad to save money that is is saving money in a jar in your house at home bad for the economy lets find out by looking at the loanable funds Market [Music] local funds are the amount of money thats available to be loaned out and this is usually done by financial institutions like Banks and Credit Unions so the loanable funds Market brings together borrowers which make up the demand curve and lenders which make up the supply curve lets start with demand everyday items can be purchased with cash but for Big Ticket items you might need to take out a loan for example if a business wants to expand they need to borrow money because that new Factory doesnt generate Revenue yet but how much they borrow depends on how much it costs to take out the loan adjusted for inflation the real interest rate if the price of the loan is really expensive because the interest rate is high theyre not going to borrow very much but if the interest rates low th
