If citizens expect to bear more of the burden for their own health care and retirement costs in the future, then we would expect their:
A) demand for loanable funds further right than it would otherwise be.
B) demand for loanable funds further left than it would otherwise be.
C) supply of loanable funds further right than it would otherwise be.
D) supply of loanable funds further left than it would otherwise be.

Question

Quizplus · Accepted Answer

If citizens expect to bear more of the burden for their own health care and retirement costs in the future, they are likely to save more in order to fund these expenses. This increased savings would result in a higher supply of loanable funds, shifting the supply curve for loanable funds to the right.

If Citizens Expect to Bear More of the Burden for Their