This figure shows the loanable funds market for a closed economy. INTEREST RATE (Percent) 000 10 5 A D₂ S₂ ‒‒‒‒‒‒‒‒ D 60 120 180 LOANABLE FUNDS (Dollars) S₂ D₂ D₁ Refer to Figure 26-4. Starting at point A, the enactment of an investment tax credit would likely cause the quantity of loanable funds traded to a. increase to $180 and the interest rate to fall to 5% (point D). b. increase to $180 and the interest rate to rise to 15% (point C). c. decrease to $60 and the interest rate to fall to 5% (point B). d. decrease to $60 and the interest rate to rise to 15% (point E).

This figure shows the loanable funds market for a closed economy. INTEREST RATE (Percent) 000 10 5 A D₂ S₂ ‒‒‒‒‒‒‒‒ D 60 120 180 LOANABLE FUNDS (Dollars) S₂ D₂ D₁ Refer to Figure 26-4. Starting at point A, the enactment of an investment tax credit would likely cause the quantity of loanable funds traded to a. increase to $180 and the interest rate to fall to 5% (point D). b. increase to $180 and the interest rate to rise to 15% (point C). c. decrease to $60 and the interest rate to fall to 5% (point B). d. decrease to $60 and the interest rate to rise to 15% (point E).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If and when the demand of loanable funds shifts to the left:
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Qq.45. Subject :- Economy
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