The savings supply curve is derived from the fact

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Reference no: EM131241502

1. The investment demand curve is derived from the fact that:

a. Savers can't keep up with the demand for investment

b. A low interest rate will attract more borrowers

c. The interest rate and the quantity of investment have a positive correlation

d. Borrowing for investments only takes place when a corporation has a lot of cash on hand

2. The savings supply curve is derived from the fact that:

a. A high interest rate induces more savings

b. A high interest rate induces less savings

c. People who save are trying to match up with potential investors

d. Banks can only supply savings at a low interest rate.

Reference no: EM131241502

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