In an unhindered free market, the supply and demand for loanable funds and, hence, the going rate of interest are driven by: The amount of money printed by the U.S. Treasury Time preferences of market participants Animal spirits The amount of deposits in the Federal Reserve

The supply and demand of loanable funds refers to the quantity of funds available for lending and the quantity of funds demanded for borrowing in a market. The market for loanable funds is where borrowers and lenders come together to exchange funds. In a free market, the supply of loanable funds comes from savings, investments, and deposits, while the demand for loanable funds comes from borrowers who need funds for consumption or investment. The market interest rate is the price that equates the supply and demand of loanable funds. In an unhindered free market, the supply and demand for loanable funds and the going rate of interest are determined by the time preferences of market participants, such as consumers and producers. Time preferences refer to the relative value that individuals place on present versus future consumption or investment. The interplay between supply and demand for loanable funds based on individual time preferences determines the market interest rate. Hence, option b is correct. The amount of money printed by the U.S. Treasury may impact the overall money supply and inflation but not the supply and demand for loanable funds and the going rate of interest directly. Hence, option a is incorrect. Animal spirits are the irrational factors that drive consumer and investor behavior. They refer to psychological factors that drive economic decision-making, such as optimism or pessimism, rather than the supply and demand of loanable funds in a free market. Hence, option c is incorrect. The amount of deposits in the Federal Reserve affects the money supply and the ability of banks to lend, but it does not determine the supply and demand for loanable funds or the going rate of interest in a free market. Hence, option d is incorrect. Hence, option b is correct. Hence, option b is correct.