16. In the standard loanable funds market graph, ... LFO (0) National LF Savings S DLF Business Investment LF ...an increase in the supply of loanable funds (rightward shift) O would cause an increase in the real interest rate. O none of the other options. O could be caused by a tax break for businesses on investment spending. O would cause a decrease in the real interest rate. O could be caused by a tax increase for individuals on interest earned from savings accounts.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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16. In the standard loanable funds market graph,
LFO
(0) National
Savings
LF
LF
Business
Investment
LF
...an increase in the supply of loanable funds (rightward shift)
Owould cause an increase in the real interest rate.
O none of the other options.
O could be caused by a tax break for businesses on investment spending.
O would cause a decrease in the real interest rate.
O could be caused by a tax increase for individuals on interest earned from savings accounts.
Transcribed Image Text:16. In the standard loanable funds market graph, LFO (0) National Savings LF LF Business Investment LF ...an increase in the supply of loanable funds (rightward shift) Owould cause an increase in the real interest rate. O none of the other options. O could be caused by a tax break for businesses on investment spending. O would cause a decrease in the real interest rate. O could be caused by a tax increase for individuals on interest earned from savings accounts.
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