When individuals become more willing to save,the:
A) demand to borrow shifts outward.
B) demand to borrow shifts inward.
C) supply of savings shifts outward.
D) supply of savings shifts inward.

Question

Quizplus · Accepted Answer

When individuals become more willing to save, they increase the supply of savings. This means that there is more money available to lend, which would shift the supply curve outwards. The demand to borrow may or may not shift, depending on other factors such as interest rates, but it is the supply of savings that is directly affected by people's willingness to save.

When Individuals Become More Willing to Save,the