Suppose the government of Italy offered a tax credit for firms that help to restore and preserve Italy's ancient sites and ruins. Using a graph and a written explanation of the market for loanable funds, explain how this event/government policy is expected to affect equilibirum interest rate and the equilibrium quantity of loanable funds in Italy.

Brief Principles of Macroeconomics (MindTap Course List)
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ISBN:9781337091985
Author:N. Gregory Mankiw
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Chapter8: Savings,investment And The Financial System
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Suppose the government of Italy offered a tax credit for firms that help to restore and preserve
Italy's ancient sites and ruins. Using a graph and a written explanation of the market for loanable
funds, explain how this event/government policy is expected to affect equilibirum interest rate and
the equilibrium quantity of loanable funds in Italy.
Transcribed Image Text:Suppose the government of Italy offered a tax credit for firms that help to restore and preserve Italy's ancient sites and ruins. Using a graph and a written explanation of the market for loanable funds, explain how this event/government policy is expected to affect equilibirum interest rate and the equilibrium quantity of loanable funds in Italy.
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