The supply curve for loanable funds would increase due to a(n)
A)increase in wealth.
B)increase in expected inflation.
C)decrease in the liquidity of bonds relative to other assets.
D)increase in the information costs of bonds relative to other assets.

Question

Quizplus · Accepted Answer

An increase in wealth typically leads to an increase in savings as people have more disposable income to save and invest, which in turn increases the supply of loanable funds in the financial markets.

The Supply Curve for Loanable Funds Would Increase Due to A(n)