Which of the Following Would Most Likely Happen in the Market

question 64

Multiple Choice

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

• A)Both investment and savings would rise.
• B)Investment would rise, and savings would fall.
• C)Both investment and savings would fall.
• D)Investment would fall, and savings would rise.

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Definitions:

External Recruitment

The process of searching for and hiring candidates from outside the organization to fill open positions, expanding the pool of potential talent.

Workforce

The collective group of individuals engaged in or available for work, either in a particular area or in a specific industry.

Downsizing

The reduction of an organization's workforce to cut costs and improve efficiency, often resulting in job losses.

Surplus Labor

Refers to the portion of labor capacity that exceeds the necessary labor for producing a desired output.