Suppose That Congress Passes an Investment Tax Credit

question 31

Multiple Choice

Suppose that Congress passes an investment tax credit.The likely result will be

• A) the supply curve for bonds will shift to the right.
• B) the demand curve for bonds will shift to the left.
• C) the demand curve for bonds will shift to the right.
• D) the equilibrium interest rate will fall.

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Definitions:

Vroom-Jago

A decision-making model that emphasizes the importance of leadership styles and situational factors in making effective decisions.

Leader-Participation Model

A leadership theory suggesting the effectiveness of a leader's decision-making is influenced by the appropriate involvement of subordinates.

Delegate

To entrust a task or responsibility to another person, typically one who is less senior in the organization.

Pollution Permit

A regulatory tool allowing entities to emit a specific amount of pollutants; often tradeable within a regulated market.