If disposable income increases, people will decide to ________ saving, the supply of loanable funds will ________ and the real interest rate will ________.

Question

Quizplus · Accepted Answer

When disposable income increases, people tend to save more, which increases the supply of loanable funds. As a result, the real interest rate tends to fall due to the increased availability of funds for lending.

If Disposable Income Increases, People Will Decide to ________ Saving