Dan saves a portion of his income in an interest-earning account. In the loanable funds market, Dan is b. John owns a pizzeria and needs to borrow money for a new oven. In the loanable funds market, John is c. Savers like Dan are likely to save more when the real interest rate. Therefore, the supply of loanable funds. d. Borrowers like John are likely to borrow more when the real interest rate. Therefore, the demand for loanable funds.
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