If Congress Were to Pass a Law Exempting Interest on Saving

question 64

Multiple Choice

If Congress were to pass a law exempting interest on saving from taxation,the:

• A) supply of loanable funds would decrease and the equilibrium interest rate rise.
• B) supply of loanable funds would increase and the equilibrium interest rate fall.
• C) demand for loanable funds would increase and the equilibrium interest rate rise.
• D) equilibrium interest rate would be unaffected.

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Definitions:

Caregivers

Individuals who provide care to others, often family members or clients, who need assistance with daily tasks.

Secure Attachment

The attachment style for most infants, who are confident enough to play in an unfamiliar environment as long as the caregiver is present and are readily comforted by the caregiver during times of distress.

Infants

Very young children, typically under one year of age, who are in the earliest stage of human development.

Comforted

The feeling of relief or encouragement when previously experiencing distress or pain.