Question

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. supply of; an increase demand for; an increase supply of; a decrease demand for; a decrease

Answer 1

Answer:

supply of; a decrease

Explanation:

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 supply of loanable funds and a decrease in equilibrium interest rates.