Dan places a portion of his earnings in an account that earns interest. in the loanable funds market, Dan is the "supplier" of the funds
The loanable funds market serves as a conduit between savers and borrowers.
Model of the market for loanable money
The loanable funds market model is used to clarify how the interaction between savers and borrowers affects the economy. The market model for loanable funds is a variant of the market model for goods and services. In this fictitious situation, a good is exchanged for money, and the price is replaced by the interest rate. It essentially explains the process through which borrowers and lenders trade loans and borrowed funds.
To know more about the loanable fund market visit:- https://brainly.com/question/15851247
#SPJ4
