Question

When disposable income increases, saving will
A) decrease, and there is a movement downward along the supply of loanable funds curve.
B) increase, and there is a movement upward along the supply of loanable funds curve.
C) not change.
D) increase, and the supply of loanable funds curve shifts rightward.
E) decrease, and the supply of loanable funds curve shifts leftward.

Answer

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