14) What could explain what is happening in the graph to the right? a. The government has given investors an investment tax credit, increasing investors appetite for savings. b. The government has removed the tax protected status of IRA accounts, increasing savings. c. The government balances the interest rate Το r1 Eo E1 So $1 budget reducing its debt, and the "crowding out" effect disappears. business desire to obtain funds. 90 91 quantity of loanable funds d. A new technology makes industry much more productive, therefore increasing e. There are many things that could explain what the graph shows us, but we don't have enough information to decide on any of a. thru d. above.
14) What could explain what is happening in the graph to the right? a. The government has given investors an investment tax credit, increasing investors appetite for savings. b. The government has removed the tax protected status of IRA accounts, increasing savings. c. The government balances the interest rate Το r1 Eo E1 So $1 budget reducing its debt, and the "crowding out" effect disappears. business desire to obtain funds. 90 91 quantity of loanable funds d. A new technology makes industry much more productive, therefore increasing e. There are many things that could explain what the graph shows us, but we don't have enough information to decide on any of a. thru d. above.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: Six Debates Over Macroeconomic Policy
Section: Chapter Questions
Problem 6PA
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Transcribed Image Text:14) What could explain what is
happening in the graph to the right?
a. The government has given
investors an investment tax credit,
increasing investors appetite for
savings.
b. The government has removed the
tax protected status of IRA
accounts, increasing savings.
c. The government balances the
interest
rate
Το
r1
Eo
E1
So
$1
budget reducing its debt, and the
"crowding out" effect disappears.
business desire to obtain funds.
90
91
quantity of loanable funds
d. A new technology makes industry much more productive, therefore increasing
e. There are many things that could explain what the graph shows us, but we don't have
enough information to decide on any of a. thru d. above.
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