If the government institutes policies that diminish incentives to save,then in the loanable funds market
A)the demand for loanable funds shifts rightward.
B)the demand for loanable funds shifts leftward.
C)the supply of loanable funds shifts rightward.
D)the supply of loanable funds shifts leftward.

Question

Quizplus · Accepted Answer

If incentives to save are diminished, people will save less, leading to a decrease in the supply of loanable funds, which shifts the supply curve leftward.

If the Government Institutes Policies That Diminish Incentives to Save,then