Answer:
Private savings has decreased.
Explanation:
The crowding out effect occurs when government intervention in the economy reduces either private investment or saving.
In the case of saving, this can occur if the government crowds out private investment by taking up large loans that cover most of the market for loanable funds. This will in turn reduce the incentive or capacity of private investors to save, reducing private saving, and decreasing the supply of loanable funds, causing the shift in the curve.
