Other Things the Same, a Higher Interest Rate Induces People

Multiple Choice

Other things the same, a higher interest rate induces people to

A) save more, so the supply of loanable funds slopes upward.
B) save less, so the supply of loanable funds slopes downward.
C) invest more, so the supply of loanable funds slopes upward.
D) invest less, so the supply of loanable funds slopes downward.