Multiple Choice
What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income?
A) There would be an increase in the amount of loanable funds borrowed.
B) There would be a reduction in the amount of loanable funds borrowed.
C) There would be no change in the amount of loanable funds borrowed.
D) The change in loanable funds is uncertain.
Correct Answer:
Verified
Correct Answer:
Verified
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