The supply curve (MRC) for capital is downsloping to the right, thus reflecting the fact of a direct relationship between interest rates and savers' willingness to save.

Question

Quizplus · Accepted Answer

The supply curve for capital, typically represented by the Marginal Rate of Saving (MRS) rather than MRC, is generally upward sloping, indicating that as interest rates increase, savers are more willing to save, not less.

The Supply Curve (MRC) for Capital Is Downsloping to the Right