What would increase the supply of national savings curve?
A)an increase in tax rates
B)a decrease in disposable income
C)an increase in real interest rates
D)an increase in disposable income

Question

Quizplus · Accepted Answer

An increase in disposable income would lead to an increase in savings, as people would have more money available to save. This would shift the national savings curve to the right, indicating an increase in supply of national savings. A decrease in disposable income (option B) would shift the curve to the left, decreasing the supply of national savings. Tax rates (option A) and real interest rates (option C) can affect the demand for national savings, but do not directly impact its supply.

What Would Increase the Supply of National Savings Curve