The supply curve for funds
A)is generally positively sloped.
B)depends upon people's savings plans.
C)is a function of the interest rate.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The supply curve for funds is generally positively sloped because as the interest rate increases, people are willing to save more and supply more funds. The curve also depends upon people's savings plans because if people have a higher propensity to save, the supply of funds will be greater at any given interest rate. Therefore, the supply curve for funds is a function of the interest rate and people's savings plans.

The Supply Curve for Funds