nawalfarrukh994 nawalfarrukh994
  • 26-12-2019
  • Business
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An increase in savings by Americans (2 points) Question 7 options: 1) would most likely increase the supply of loanable funds.

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BenitoMarin BenitoMarin
  • 29-12-2019

Answer:

The correct answer is letter "A": would most likely increase the supply of loanable funds.

Explanation:

In the case Americans start saving more money, financial institutions will feel more confident in providing them with more loans because debtors have stored some resources that could cushion debts if they arise. Thus, the supply of loanable funds is likely to increase under this scenario.

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