If citizens expect to bear most of the burden for their own health care and retirement costs in the future, then we would expect the _______ loanable funds to be _______ than it would be if retirement benefits were expected.
A) demand for; greater
B) demand for; lesser
C) supply of; greater
D) supply; lesser

Question

Quizplus · Accepted Answer

When citizens expect to bear most of the burden for their own health care and retirement costs, they are likely to save more to prepare for these expenses. This increases the supply of loanable funds in the economy.

If Citizens Expect to Bear Most of the Burden for Their