Which of the following factors changes saving supply and hence shifts the supply of loanable funds curve?
i. Disposable income
ii. Default risk
iii. Expected profit
A) i only
B) ii only
C) iii only
D) i and ii
E) i, ii and iii

Question

Quizplus · Accepted Answer

Disposable income affects the amount people can save, and default risk influences the willingness to lend, both impacting the supply of loanable funds. Expected profit primarily affects demand for funds, not supply.

Which of the Following Factors Changes Saving Supply and Hence