1.Individual savings contributes to: A) the supply of loanable funds. B) the demand for loanable funds. C) both the supply of loanable funds and the demand for loanable funds. D) neither the supply of loanable funds nor the demand for loanable funds. 2.The supply curve for savings indicates that the higher the interest rate, the: A) larger the quantity saved. B) smaller the quantity saved. C) larger the saver's income. D) smaller the saver's income. 3.When the interest rate increases, the: A) amount of savings in banks decreases. B) amount of borrowing to finance investments decreases. C) cost of borrowing decreases. D) return on investments increases. 4.In economics, investment refers to the: A) purchase of new capital goods. B) purchase of stocks and bonds. C) amount of personal savings in a bank. D) fund used to settle a debt. P