When people worry about the future and opt to save more, then the _____ loanable funds shifts to the _____.
A)demand for; right
B)supply of; left
C)demand for; left
D)supply of; right

Question

Quizplus · Accepted Answer

When people worry about the future and decide to save more, they are increasing the amount of money available for lending. This increases the supply of loanable funds, which is represented by a shift to the right on the supply curve.

When People Worry About the Future and Opt to Save