What Would Happen, All Else Equal, in the Market for Loanable

question 72

Multiple Choice

What would happen, all else equal, in the market for loanable funds if the government were to decrease the tax rate on interest income?

• A)There would be an increase in the equilibrium quantity of loanable funds.
• B)There would be a reduction in the equilibrium quantity of loanable funds.
• C)There would be no change in the equilibrium quantity of loanable funds.
• D)The change in loanable funds is uncertain.

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