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25-07-2019
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If a popular TV show on personal finance convinces more Americans about the importance of saving for retirement, the curve for loanable funds would shift, driving the equilibrium interest rate .

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DelcieRiveria DelcieRiveria

02-08-2019

Answer:

Supply curve for loanable funds would shift, leading to a fall in the equilibrium interest rate.

Explanation:

If the people are convinced that saving is important and start saving more, the supply of loanable funds will increase. As a result the supply curve will shift to the right. This shift in the supply curve will be accompanied with a decline in the equilibrium interest rate.

So, the correct answer is: supply; downwards.

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