An increase in the supply of saving curve will cause the equilibrium interest rate to:
A) increase.
B) decrease.
C) remain unchanged.
D) first increase and then decrease.

Question

Quizplus · Accepted Answer

An increase in the supply of saving curve means that there is more saving available in the economy, which will push interest rates down as borrowers will have access to more funds at lower rates. Therefore, the equilibrium interest rate will decrease.

An Increase in the Supply of Saving Curve Will Cause