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Suppose That Parliament Were to Repeal an Investment Tax Credit

Question 98

Multiple Choice

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


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

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