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:

Tadeusz Mazowiecki

A Polish politician and journalist who served as the first non-communist Prime Minister of Poland since 1945, playing a significant role in the nation's transition to democracy.

Velvet Revolution

A non-violent transition of power in Czechoslovakia in 1989, marking the end of Communist rule and the onset of democracy.

Nonviolent

Refers to the practice of advocating for or achieving goals through peaceful methods and without the use of force.

Russian Federation

The official name for the country of Russia post-1991, signifying its status as a semi-presidential federal republic comprising numerous federal subjects.