MKT-4.C—Define (using graphs as appropriate) equilibrium in the loanable funds market

Define (using graphs as appropriate) equilibrium in the loanable funds market.

• In the loanable funds market, equilibrium is achieved when the real interest rate is such that the quantities demanded and supplied of loanable funds are equal.
• Enduring understanding MKT-4: The interaction of borrowers, who demand loanable funds, and savers, who supply loanable funds, determines the equilibrium real interest rate.