04.07 The Loanable Funds Market Define the loanable funds market. Using a graph, explain characteristics of the loanable funds market, including the relationship between the real interest rate and the quantity of loanable funds demanded or supplied. Define and describe national savings. Illustrate and explain equilibrium and disequilibrium in the loanable funds market, including how market forces will push the market toward equilibrium. Illustrate and explain shifts of demand and supply in the loanable funds market and the outcomes for the equilibrium real interest rate and equilibrium quantity of loanable funds