If the recent financial crisis raises awareness about the dangers of not saving,leading to an increase in overall savings rates across the country,the loanable funds market will experience an increase in the _____ loanable funds and _____ in equilibrium interest rates.

Question

Quizplus · Accepted Answer

An increase in overall savings rates increases the supply of loanable funds in the market, leading to a decrease in equilibrium interest rates as more funds are available for borrowing.

If the Recent Financial Crisis Raises Awareness About the Dangers