If savers do not have fixed savings goals, the supply curve of loanable funds will generally be
A)horizontal.
B)downward sloping.
C)vertical.
D)upward sloping.

Question

Quizplus · Accepted Answer

The supply curve of loanable funds is generally upward sloping because as the interest rate increases, savers are more inclined to save more money, thus increasing the supply of loanable funds.

If Savers Do Not Have Fixed Savings Goals, the Supply