The Atlantic Investment Tax Credit is a 10% tax creditavailable to businesses that make specific investments in theAtlantic region and the Gaspe Peninsula. The graph showsthe market for loanable funds.Show the impact of this tax credit by moving the propercurve appropriately in the graph.The new equilibrium interest rate isThe quantity of loanable funds is $કbillionWhich statement accurately describes the impact of theAtlantic Investment Tax Credit?Interest rate (%)1098765st32100510 15 20 25 30 35Quantity of loanable funds (in billions)40SupplyDemand4550

Tax Credit: It is the amount of money that individuals or businesses, can deduct directly from the…

Answered: The new equilibrium interest rate is…

The new equilibrium interest rate is The quantity of loanable funds is $ % billion Which statement accurately describes the impact of the Atlantic Investment Tax Credit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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 $
ક
billion
Which statement accurately describes the impact of the
Atlantic Investment Tax Credit?
Interest rate (%)
10
9
8
7
6
5
st
3
2
1
0
0
5
10 15 20 25 30 35
Quantity of loanable funds (in billions)
40
Supply
Demand
45
50

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