Menu

Question 8 Figure 264 This Figure Shows The Loanable Funds Market For A Closed Economy

0 Comment

QUESTION 8
Figure 26-4
This figure shows the loanable funds market for a closed economy.
33
INTEREST RATE (Percent)
F
12
A
D-
4
D-
D.
60
120
180
LOANABLE FUNDS (Dollars)
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
O a. decrease to $60 and the interest rate to fall to 4% (point B)
b. increase to $180 and the interest rate to fall to 4% (point D).
c. decrease to $60 and the interest rate to rise to 12% (point E).
O d. increase to $180 and the interest rate to rise to 12% (point C).Macroeconomics