Which of the Following Policies Would Increase the Demand for Loanable

question 116

Multiple Choice

Which of the following policies would increase the demand for loanable funds and thus investment spending?

• A) A reduction in the investment tax credit.
• B) An increase in the corporate profits tax.
• C) A reduction in the capital gains tax.
• D) An increase in the investment tax credit.
• E) An increase in transfer payments.

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Definitions:

Row Variable

A categorical variable used in tables to categorize subjects or data points based on a specific attribute.

Column Variable

A variable represented by a column in a data table, where each row entry under that column pertains to different observations or records.

Degrees of Freedom

Degrees of freedom refer to the number of values in a calculation which are free to vary without violating the constraints of the calculation.

Chi-Square

A statistical test used to determine if there is a significant difference between observed frequencies and expected frequencies in categorical datasets.