How do national savings and public savings interact to determine the availability of loanable funds in an economy?

• A. National savings are independent of public savings and do not affect loanable funds.
• B. Public savings decrease national savings, reducing the availability of loanable funds.
• C. National savings are solely determined by private savings and exclude public savings.
• D. Public savings are a component of national savings, which together determine the supply of loanable funds.

Answer: (D)