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Suppose That Parliament Were to Institute an Investment Tax Credit

Question 2

Multiple Choice

Suppose that Parliament were to institute an investment tax credit. What would most likely happen in the market for loanable funds?


A) The demand for and supply for loanable funds would shift left.
B) The demand for and supply of loanable funds would shift left.
C) The demand for loanable funds would shift right.
D) The supply of loanable funds would shift right.

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