Suppose Government Does Not Allow Households to Deduct Their Mortgage

question 34

Multiple Choice

Suppose government does not allow households to deduct their mortgage interest expenses from their income tax anymore.How this change is represented in the loanable funds model?

• A) The supply of funds curve shifts to the left.
• B) The supply of funds curve shifts to the right.
• C) The demand for funds curve shifts to the left.
• D) The demand for funds curve shifts to the right.

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Definitions:

Environmental Factors

Elements in the external environment that can influence the growth, development, behavior, and survival of organisms and ecosystems.

Concordance

Agreement or harmony between tests, measures, or instruments that assess the same phenomenon or characteristics.

Identical Twins

Twins who develop from a single fertilized egg that splits into two, sharing 100% of their DNA, making them genetically identical.

Psychotic

Relating to psychosis, a mental disorder characterized by a disconnection from reality, often manifesting as hallucinations or delusions.