When disposable income increases, saving will
A) not change.
B) increase, and the supply of loanable funds curve shifts rightward.
C) decrease, and there is a movement downward along the supply of loanable funds curve.
D) increase, and there is a movement upward along the supply of loanable funds curve.
E) decrease, and the supply of loanable funds curve shifts leftward.
Question 2
Define stagflation and explain how it can be created.
What will be an ideal response?