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As of 2015, the citizens of Zimbabwe had an average life expectancy of 61 years. A sudden increase in the quality of health care across the country, due to large donations from international non-governmental organizations, has increased the projected life expectancy to 75 years. How would this change in life expectancy affect the market for loanable funds in Zimbabwe

Sagot :

Parrain

Answer: Increase in Supply of Loanable funds

Explanation:

With people now living longer in Zimbabwe, they will need a way to sustain their selves in their old age. This will lead to them saving more money in pensions and other financial instruments presented by banks.

These banks will then use this money that these people have saved to create loans for entities in the economy thereby increasing the supply of loanable funds and reducing interest rates.

When there is any  change in life expectancy so it Increase in Supply of Loanable funds

Loanable funds:

With people now living longer in Zimbabwe, they will required a way to sustain their selves in their old age. This will result to saving more money with respect to pensions and other financial instruments represented by banks. After this, the bank use this money that these people have saved to develop loans for entities in the economy  so increasing the supply of loanable funds by decreasing interest rates.

Learn more about loan here: https://brainly.com/question/21800210

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