Answer:
b. and the equilibrium quantity of loan-able funds both would be higher.
Explanation:
- If in the past congress had taken additional actions to make savings more rewarding, then today it is likely that the equilibrium interest rate would be lower and the quantity of loan-able funds would be higher.
- Savings are affected by interest rate reward in that, when the interest rate are more rewarding, then, there shall be more customers ready to save their money and vice versa.
- The quantity of loan-able funds shall go higher out of the increased willingness to save.
