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QUESTION
What's the loanable funds theory of interest? Please explain this theory. What's the Fisher equation?
What's the loanable funds theory of interest? Please explain this theory. What's the Fisher equation?
SOLUTION:According to the loanable funds theory of interest, the rate of interest is the price that equates the demandfor the loanable funds with the supply of the loanable funds. Loanable funds...