A change in the tax laws that increases the supply of loanable funds will have a smaller effect on investment when a. the demand for loanable funds is more elastic and the supply of loanable funds is more inelastic. b. both the demand for and supply of loanable funds are more elastic.
A change in the tax laws that increases the supply of loanable funds will have a smaller effect on investment when
a.
the
b.
both the demand for and supply of loanable funds are more elastic.
c.
both the demand for and supply of loanable funds are more inelastic.
d.
the demand for loanable funds is more inelastic and the supply of loanable funds is more elastic.
Which of the following would necessarily create a surplus at the original equilibrium interest rate in the loanable funds market?
a.
a decrease in the supply of or an increase in the demand for loanable funds
b.
an increase in the supply of or an increase in the demand for loanable funds
c.
an increase in the supply of or a decrease in the demand for loanable funds
d.
a decrease in the supply of or a decrease in the demand for loanable funds
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