Multiple Choice
How would the equilibrium interest rate respond to a change from an income tax to a consumption tax?
A) The equilibrium interest rate would rise.
B) The equilibrium interest rate would fall.
C) The equilibrium interest rate would be unaffected.
D) The equilibrium interest rate may rise or fall based on whether the demand or supply of loanable funds changes.
Correct Answer:
Verified
Correct Answer:
Verified
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