An increase in public saving has what impact on the market for loanable funds?

Question

Quizplus · Accepted Answer

An increase in public saving increases the supply of loanable funds in the market. This is because the public is saving more, which means they have more money available to lend out. As a result, the supply curve shifts to the right in the loanable funds market, leading to a decrease in the equilibrium interest rate and an increase in the quantity of funds lent out.

An Increase in Public Saving Has What Impact on the Market