Multiple Choice
A change in the tax laws that increases the supply of loanable funds will have a smaller effect on investment when
A) the demand for loanable funds is more elastic and the supply of loanable funds is more inelastic.
B) the demand for loanable funds is more inelastic and the supply of loanable funds is more elastic.
C) both the demand for and supply of loanable funds are more elastic.
D) both the demand for and supply of loanable funds are more inelastic.
Correct Answer:
Verified
Correct Answer:
Verified
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