What Would Most Likely Happen in the Market for Loanable

question 86

Multiple Choice

What would most likely happen in the market for loanable funds if the government were to increase the tax on interest income?

• A) The supply of loanable funds would shift right.
• B) The demand for loanable funds would shift right.
• C) The supply of loanable funds would shift left.
• D) The demand for loanable funds would shift left.

---

Definitions:

Research and Development

Activities undertaken by a company to innovate and introduce new products or services, or to improve their existing offerings.

International Financial Reporting Standards

A set of accounting standards developed by the International Accounting Standards Board that provides globally consistent financial reporting norms.

Inventory Write-Downs

An accounting process of reducing the cost of inventory that has declined in value below its original cost.

Net Profit Margin Ratio

A profitability measure that calculates the percentage of net income derived from total revenues.