Suppose the U

Multiple Choice

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

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