ilable to businesses that make specific investments in Atlantic region and the Gaspe Peninsula. The graph Ows the market for loanable funds. ow the impact of this tax credit by moving the proper rve appropriately in the graph. he new equilibrium interest rate is The quantity of loanable funds is $ 1 Incorrect 5 Incorrect I billion Which statement accurately describes the impact of the Atlantic Investment Tax Credit? Firms find that more investments are profitable and increase their demand for loanable funds. As a result, the interest rate rises. Interest rate (%) 10 0 5 10 15 20 25 30 35 Quantity of loanable funds (in billions) 40 Supply 45 Demand 50
ilable to businesses that make specific investments in Atlantic region and the Gaspe Peninsula. The graph Ows the market for loanable funds. ow the impact of this tax credit by moving the proper rve appropriately in the graph. he new equilibrium interest rate is The quantity of loanable funds is $ 1 Incorrect 5 Incorrect I billion Which statement accurately describes the impact of the Atlantic Investment Tax Credit? Firms find that more investments are profitable and increase their demand for loanable funds. As a result, the interest rate rises. Interest rate (%) 10 0 5 10 15 20 25 30 35 Quantity of loanable funds (in billions) 40 Supply 45 Demand 50
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.2P
Related questions
Question
![The Atlantic Investment Tax Credit is a 10% tax credit
available to businesses that make specific investments in
the Atlantic region and the Gaspe Peninsula. The graph
shows the market for loanable funds.
Show the impact of this tax credit by moving the proper
curve appropriately in the graph.
The new equilibrium interest rate is
The quantity of loanable funds is $
1
Incorrect
5
Incorrect
I
billion
Which statement accurately describes the impact of
the Atlantic Investment Tax Credit?
%
Firms find that more investments are profitable and
increase their demand for loanable funds. As a
result, the interest rate rises.
Interest rate (%)
10
10
3
2
0
0
5
10 15 20 25 30 35
Quantity of loanable funds (in billions)
40
Supply
45
Demand
50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2260332-e807-4fe9-86e5-6b0e2695737c%2F2c70770b-4d54-4b0e-b934-fedbbe6c151c%2Fkow6ho_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Atlantic Investment Tax Credit is a 10% tax credit
available to businesses that make specific investments in
the Atlantic region and the Gaspe Peninsula. The graph
shows the market for loanable funds.
Show the impact of this tax credit by moving the proper
curve appropriately in the graph.
The new equilibrium interest rate is
The quantity of loanable funds is $
1
Incorrect
5
Incorrect
I
billion
Which statement accurately describes the impact of
the Atlantic Investment Tax Credit?
%
Firms find that more investments are profitable and
increase their demand for loanable funds. As a
result, the interest rate rises.
Interest rate (%)
10
10
3
2
0
0
5
10 15 20 25 30 35
Quantity of loanable funds (in billions)
40
Supply
45
Demand
50
![Please use the graph to answer the questions.
Given the market conditions, what will the prevailing
interest rate be?
O 2%
O 10%
O 6%
O 18%
Given the market conditions, how much money is
borrowed in the loanable funds market?
O $10 billion
O $50 billion
O$30 billion
O $70 billion
$90 billion](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2260332-e807-4fe9-86e5-6b0e2695737c%2F2c70770b-4d54-4b0e-b934-fedbbe6c151c%2F9qapum_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Please use the graph to answer the questions.
Given the market conditions, what will the prevailing
interest rate be?
O 2%
O 10%
O 6%
O 18%
Given the market conditions, how much money is
borrowed in the loanable funds market?
O $10 billion
O $50 billion
O$30 billion
O $70 billion
$90 billion
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