If Congress Were to Pass a Law Exempting Interest on Saving

question 114

Multiple Choice

If Congress were to pass a law exempting interest on saving from taxation, the

• A) supply of loanable funds would decrease and the equilibrium interest rate would rise.
• B) supply of loanable funds would increase and the equilibrium interest rate would fall.
• C) demand for loanable funds would increase and the equilibrium interest rate would rise.
• D) equilibrium interest rate would be unaffected.

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Definitions:

OBD II

On-Board Diagnostics, second generation; a standardized system that allows electronic access to a vehicle's diagnostic information.

Malfunctions

Failures or dysfunctions in a system, equipment, or part, often causing it to operate incorrectly or not at all.

Emissions

Pollutants released into the air from sources such as vehicles, factories, and power plants, often regulated to protect environmental and public health.

Testing

The process of examining and evaluating something to determine its condition, quality, or efficiency through various methods and techniques.