Answer:
A) Elastic
Explanation:
The evidence on the supply curve of financial capital is controversial, but at least in the short run, the elasticity of savings with respect to the interest rate appears to be elastic
Elasticity is when change in a given factor triggers a big reaction in the other variable under consideration. Interest rates are elastic in relationship to savings which explains why in macroeconomics, one of the ways to trigger savings and reduce money in circulation is by increasing interest rates.
When interest rates are high, savings are high although it cannot be said that the relationship is perfectly elastic because even with drop in interest rates people still save but not as much.
