If Congress Were to Pass a Law Exempting Interest on Saving

question 253

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:

Procedural Memory

A type of long-term memory that is responsible for knowing how to perform certain tasks without conscious awareness of the learning process.

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex and within the forebrain, responsible for the control of basic emotions and drives.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors. It is the driving force behind human actions.

Beta Rhythm Patterns

Brain wave patterns that represent a state of alertness, active thinking, and concentration.