Canadians Saving More

Canadians are savingmore, even as the returns on their savings havedwindled, which is not what standard economic theory predicts. In the second quarter of2016, Canada's household savings rate was 4.2percent, close to its average since the end of the Great Recession and more than double the average rate for the five years preceding the crisis. Yet interest rates were much lower after the recession.

Source: The Globe and Mail, October8, 2016

Is the news clip talking about the quantity of loanable funds supplied or the supply of loanablefunds?

A.

The supply of loanable funds because the Great Recession changed some of the factors that influence saving at every real interest rate.

B.

The supply of loanable funds because all saving decisions create a shift of the supply curve.

C.

The quantity of loanable funds supplied because as the real interest rate changes a movement occurs along the supply curve.

D.

The quantity of loanable funds supplied because the Great Recession decreased expected future income and increased saving.