Which of the following events could explain a decrease in interest rates together with an increase in investm OA. The government went from surplus to deficit. B. The government instituted an investment tax credit (tax incentive for business investment). . OC. The government reduced the tax rate on savings. D. None of the above is correct.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: Savings,investment And The Financial System
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Which of the following events could explain a decrease in interest rates together with an increase in investm
A. The government went from surplus to deficit.
B. The government instituted an investment tax credit (tax incentive for business investment).
•
OC. The government reduced the tax rate on savings.
D. None of the above is correct.
Transcribed Image Text:Which of the following events could explain a decrease in interest rates together with an increase in investm A. The government went from surplus to deficit. B. The government instituted an investment tax credit (tax incentive for business investment). • OC. The government reduced the tax rate on savings. D. None of the above is correct.
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