CEVAP:

The interest rate, in macroeconomics, is often determined in the framework of total money supply and total money demand for an economy. However, since we focus on microeconomics, we should rather consider a micro-based theory of interest rate. Specifically, the loanable funds theory of interest explains the interest rate not in terms of the total supply of and demand for money but, rather, in terms of the supply of and demand for funds available for lending and borrowing.