What does this situation look like in terms of loanable funds?

用可贷资金来表示，情况会是怎样呢？

A higher real interest rate encourages people to save and raises the quantity of loanable funds supplied.

更高的实际利率鼓励人们储蓄并提高可贷资金供给的数量。

This is the “loanable funds” model of the interest rate, which is in every textbook, mine included. It looks like this

这就是出现在几乎每一本教科书里的利率的“可贷资金”模型，我写的书也不例外。

In other words, the interest rate on loanable funds cannot fall below zero because holding cash guarantees a rate of return of zero.

换句话说，可贷资金的利率不可能低于零，因为持有现金的回报率都可以为零。

Describe supply and demand in the market for loanable funds and the market for foreign-currency exchange. How are these markets linked?

说明可贷资金市场与外汇市场的供给与需求，这两个市场如何联系？

In neoclassical interest-rate theory for instance, the interest rate is believed to be determined by the supply of and demand for loanable funds.

例如，在新古典利率理论中，利率被认为是由可贷资金的供给和需求决定的。

A liquidity trap can occur whenever there is a sharp reduction in demand for loanable funds-which is exactly what happened during the Great Depression.

只要对可贷资金的需求出现急剧下降，流动性陷阱就会发生——这正是大萧条期间所发生的事情。