Considering the market for loanable funds as depicted in the given graph, a change that increased the quantity people want to save at any given interest rate would cause a new equilibrium at a:

Question

Quizplus · Accepted Answer

An increase in the quantity of funds saved at any given interest rate would shift the supply curve for loanable funds to the right. This would result in a new equilibrium with a lower interest rate and a higher equilibrium quantity of funds saved and invested.

Considering the Market for Loanable Funds as Depicted in the Given