Multiple Choice
In the loanable funds model,an increase in an investment tax credit would create a
A) shortage at the former equilibrium interest rate.This shortage would lead to a rise in the interest rate.
B) shortage at the former equilibrium interest rate.This shortage would lead to a fall in the interest rate.
C) surplus at the former equilibrium interest rate.This surplus would lead to a rise in the interest rate.
D) surplus at the former equilibrium interest rate.This surplus would lead to a fall in the interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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