n the standard loanable funds market graph, … …an increase in the supply of loanable funds (rightward shift)... Group of answer choices A) none of the other options. B) could be caused by a tax increase for individuals on interest earned from savings accounts. C) would cause an increase in the real interest rate. D) could be caused by a tax break for businesses on investment spending. E) would cause a decrease in the real interest rate.
n the standard loanable funds market graph, … …an increase in the supply of loanable funds (rightward shift)... Group of answer choices A) none of the other options. B) could be caused by a tax increase for individuals on interest earned from savings accounts. C) would cause an increase in the real interest rate. D) could be caused by a tax break for businesses on investment spending. E) would cause a decrease in the real interest rate.
Chapter21: Financial Markets, Saving, And Investment
Section: Chapter Questions
Problem 6P
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Question
In the standard loanable funds market graph, …
…an increase in the supply of loanable funds (rightward shift)...
Group of answer choices
A) none of the other options.
B) could be caused by a tax increase for individuals on interest earned from savings accounts.
C) would cause an increase in the real interest rate.
D) could be caused by a tax break for businesses on investment spending.
E) would cause a decrease in the real interest rate.
Transcribed Image Text:Question 9
9. In the standard loanable funds market graph, .
sfe) National
Savings
LF
Business
fo)
Investment
LF
LF.
LF
an increase in the supply of loanable funds (rightward shift).
none of the other options.
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