Multiple Choice
Which of the following would most likely happen in the market for loanable funds if the government were to decrease the tax 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 borrowed would be ambiguous.
Correct Answer:
Verified
Correct Answer:
Verified
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