What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?
a. the supply of loanable funds would shift right and investment would increase.
b. the supply of loanable funds would shift left and investment would decrease.
c. the demand for loanable funds would shift right and investment would increase.
d. the demand for loanable funds would shift left and investment would decrease.
A
You might also like to view...
Which of the following is not true about the composition of GDP in 2014?
A) Imports are greater than exports. B) Business fixed investment is the largest component of investment. C) Purchases made by state and local governments are greater than purchases made by the federal government. D) The majority of consumer spending is on durable goods.
Producer surplus equals total revenue minus the sum of all marginal cost
What will be an ideal response?