ewed as a function of supply. Thus, the supply of loanable funds is affected as follows: "the volume of commodities offered to be used as capital will increase as the percentage reward or rate of interest increases" (Cochrane 70). Fisher (149-183) applied utility analysis to this approach to the supply of loanable funds, as a way of demonstrating exactly how much savings would be made available for loans to business firms and to other investors under varying changes in the rate of interest. The result
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