Which of the Following Would Most Likely Happen in the Market

question 114

Multiple Choice

Which of the following would most likely happen in the market for loanable funds if the government were to increase the tax on interest income?

• A)Interest rates would rise and savings would fall.
• B)Both interest rates and savings would rise.
• C)Both interest rates and savings would fall.
• D)Interest rates would fall and savings would rise.

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Definitions:

Double-Pay

A situation where an individual receives twice the amount of payment that is due for a particular period or task, often due to an error or as a special compensation.

Workers Compensation System

The structured process through which employees can receive benefits and compensation for work-related injuries or illnesses.

Accident

An unexpected and unplanned event, often causing damage or injury.

Occupational Safety

The discipline focused on the safety, health, and welfare of people engaged in work or employment.