Loanable Funds Market

Households find it worthwhile to save as savings earn more (correct)

Households tend to spend more and save less

Households prefer to invest in stocks rather than saving

High interest rates have no impact on household saving

Firms reduce their investments due to low interest rates

Firms borrow more for investment projects because borrowing is inexpensive (correct)

Firms rely on internal funds rather than borrowing at low interest rates

Low interest rates have no impact on borrowing by firms

High interest rates discourage firms from borrowing (correct)

High interest rates lead to aggressive borrowing by firms

High interest rates encourage firms to borrow more for long-term projects

High interest rates have no impact on borrowing by firms