A policy that induces people to save more shifts
A)the supply of loanable funds and raises interest rates.
B)the supply of loanable funds and reduces interest rates.
C)the demand for loanable funds and raises interest rates.
D)the demand for loanable funds and reduces interest rates.

Question

Quizplus · Accepted Answer

A policy that induces people to save more increases the supply of loanable funds, which typically leads to a reduction in interest rates as there is more capital available for borrowing.

A Policy That Induces People to Save More Shifts