When Will a Change in the Tax Laws That Increases

question 5

Multiple Choice

When will a change in the tax laws that increases the supply of loanable funds have a bigger effect on investment?

• A) when the demand for loanable funds is more elastic and the supply of loanable funds is more inelastic
• B) when the demand for loanable funds is more inelastic and the supply of loanable funds is more elastic
• C) when both the demand for and supply of loanable funds are more elastic
• D) when both the demand for and supply of loanable funds are more inelastic

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Definitions:

Trunk

The main part of the body, excluding the head, neck, and limbs, housing the majority of vital organs.

Basal Ganglia

A group of structures in the brain involved in processing information on movement and coordination.

Amygdala

A part of the brain's limbic system involved in emotion, survival instincts, and memory.

Caudate Nucleus

A part of the brain within the basal ganglia involved in various functions including motor control and learning processes.