Which statement is NOT true?
A) The supply of loanable funds comes from saving.
B) Saving behavior is a cultural phenomenon.
C) The reward for not spending today is the interest received on saving.
D) The supply of funds to the loanable funds market is inversely related to the interest rate.

Question

Quizplus · Accepted Answer

The supply of funds to the loanable funds market is directly related to the interest rate, not inversely. As interest rates increase, saving becomes more attractive, leading to an increase in the supply of loanable funds.

Which Statement Is NOT True