omework Ch 13 INTEREST RATE Percent 05 9 S 4 3 2 0 0 Supply 100 200 Demand 300 400 500 600 LOANABLE FUNDS Billions of dollars 700 800 is the source of the supply of loanable funds As the interest rate falls the quantity of loanable funds supplied than the quantity of la the interest rates they charge thereb the quantity of loanable funds demanded moving the market Suppose the interest rate is 4 5 Based on the previous graph the quantity of loanable funds supplied is of loanable funds This would encourage lenders to demanded resulting in a the quantity of loanable funds supplied and