The repeal of a previously existing tax credit causes borrowers to demand less loanable funds. Because the quantity of loanable funds pressure on interest rates. This change in demanded is now less than interest rates causes a(n) decrease the quantity of loanable funds supplied, there is downward in the quantity of loanable funds supplied.
The repeal of a previously existing tax credit causes borrowers to demand less loanable funds. Because the quantity of loanable funds pressure on interest rates. This change in demanded is now less than interest rates causes a(n) decrease the quantity of loanable funds supplied, there is downward in the quantity of loanable funds supplied.
Chapter21: Financial Markets, Saving, And Investment
Section: Chapter Questions
Problem 9P
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