The loan supply curve has a positive slope

Question

Quizplus · Accepted Answer

The loan supply curve has a positive slope for all savers except those with fixed accumulation goals because savers without fixed accumulation goals are able to adjust their savings in response to changes in interest rates, while savers with fixed goals may not have the flexibility to do so. This means that as interest rates rise, savers without fixed goals are more willing to lend money, leading to an increase in the supply of loans and a positive slope for the loan supply curve.

The Loan Supply Curve Has a Positive Slope