Use the following to answer questions:
-(Figure: Loanable Funds Market II)Use Figure: Loanable Funds Market II.A decrease in savings by the private sector will shift the domestic supply of loanable funds to the _____ and _____ the interest rate.

Question

Use the following to answer questions: 
-(Figure: Loanable Funds Market II)Use Figure: Loanable Funds Market II.A decrease in savings by the private sector will shift the domestic supply of loanable funds to the _____ and _____ the interest rate.

Quizplus · Accepted Answer

A decrease in savings by the private sector reduces the supply of loanable funds, shifting the supply curve to the left and increasing the interest rate.

Use the Following to Answer Questions