AP macroeconomics part 7 video response

We learn about the loanable funds graph. In the vertical axis it is similar to the money market graph because it is interest rate. On the horizontal axis it is the quantity of loanable funds (QLF). Then the demand curve is downward sloping like the others but the supply curve is upward sloping, not vertical like it was in the money market graph. The supply of loanable funds is dependent on savings and how much money there is in the bank. If there is more incentive to save then we increase the supply curve and if there is more incentive to not save, then we shift the supply curve to the left. It is easier to see impact if you put loanable funds graph next to money market graph. An increase in the interest rate in one graph means an increase in the interest rate of the other graph.