The supply of savings function is:
A) upward sloping.
B) downward sloping.
C) vertical.
D) horizontal.

Question

Quizplus · Accepted Answer

The supply of savings function is upward sloping, as the higher the interest rate, the more incentive individuals have to save and the more savings they will supply. This is because they are receiving a higher return on their savings. Conversely, if interest rates are low, individuals have less incentive to save and will supply less savings.

The Supply of Savings Function Is