According to the Loanable Funds Model,which of the Following Events

Multiple Choice

According to the loanable funds model,which of the following events would result in higher interest rates and greater saving?

A) Firms become pessimistic about the future and,as a result,they cut back on their plans to buy new equipment and build new factories.
B) The government goes from running a budget deficit to running a budget surplus.
C) Congress passes a reform of the tax laws that encourages greater saving.
D) Congress passes a reform of the tax laws that encourages greater investment.