If the government institutes policies that increase incentives to save,then in the loanable funds market

Question

Quizplus · Accepted Answer

When the government increases incentives to save, individuals and households tend to save more, increasing the supply of loanable funds. This leads to a rightward shift in the supply of loanable funds curve in the loanable funds market. As a result, the equilibrium interest rate decreases, and the equilibrium quantity of loanable funds increases. Therefore, option C is the correct answer.

If the Government Institutes Policies That Increase Incentives to Save,then