If expected future disposable income increases, then
A) the supply of loanable funds increases.
B) the supply of loanable funds decreases.
C) the quantity of loanable funds demanded increases.
D) the quantity of loanable funds supplied decreases.
E) the demand for loanable funds decreases.

Question

Quizplus · Accepted Answer

When expected future disposable income increases, people are likely to save less today, leading to a decrease in the supply of loanable funds.

If Expected Future Disposable Income Increases, Then