Use the following to answer questions:
-(Figure: The Market for Loanable Funds II) Use Figure: The Market for Loanable Funds II. An increase in savings by the private sector will shift the supply of loanable funds to the_____ and _____ the interest rate.

Question

Use the following to answer questions: 
-(Figure: The Market for Loanable Funds II) Use Figure: The Market for Loanable Funds II. An increase in savings by the private sector will shift the supply of loanable funds to the_____ and _____ the interest rate.

Quizplus · Accepted Answer

An increase in savings by the private sector increases the supply of loanable funds, shifting the supply curve to the right. This results in a lower equilibrium interest rate.

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