Which of the Following Would Most Likely Happen in the Market

question 9

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.
• B)Interest rates would be unaffected.
• C)Interest rates would fall.
• D)The change in the interest rate would be ambiguous.

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Definitions:

Tangible Rewards

Physical or material incentives given to individuals as acknowledgment of their effort or achievements.

Praise

The expression of approval, commendation, or admiration towards someone or something.

Workers

Individuals engaged in a specific activity or occupation, especially one involving physical or mental effort.

Positive

Characterized by or displaying acceptance, optimism, or constructive qualities rather than negativity or pessimism.