Multiple Choice
What would most likely happen in the market for loanable funds if the government were to decrease the tax rate on interest income?
A) The supply of and demand for loanable funds would shift to the right.
B) The supply of and demand for loanable funds would shift to the left.
C) The supply of loanable funds would shift to the right, and the demand for loanable funds would shift to the left.
D) The supply of loanable funds would shift to the right, and the demand for loanable funds will remain unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
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