Figure 26-5.Figure 26-5 shows the loanable funds market for a closed economy.
-Refer to Figure 26-5.Starting at point A,a change in tax laws that encouraged households to save more would likely cause

Question

Figure 26-5.Figure 26-5 shows the loanable funds market for a closed economy. 
-Refer to Figure 26-5.Starting at point A,a change in tax laws that encouraged households to save more would likely cause

Quizplus · Accepted Answer

An increase in savings shifts the supply of loanable funds to the right, leading to a lower interest rate and a higher quantity of loanable funds traded.