Suppose the U

Multiple Choice

Suppose the U.S. offered a tax credit for firms that built new factories in the U.S. Then the

A) demand for loanable funds would shift rightward, initially creating a surplus of loanable funds at the original interest rate.
B) demand for loanable funds would shift rightward, initially creating a shortage of loanable funds at the original interest rate.
C) supply of loanable funds would shift rightward, initially creating a surplus of loanable funds at the original interest rate.
D) supply of loanable funds would shift rightward, initially creating a shortage of loanable funds at the original interest rate.