What Effect Will an Investment Tax Credit Have on Interest

question 180

Multiple Choice

What effect will an investment tax credit have on interest rates and the quantity of savings?

• A) There will be no effect because investment tax credits only affect the amount of taxes paid by firms.
• B) Both interest rates and the quantity of savings will increase.
• C) Interest rates will decrease and the quantity of savings will increase.
• D) Interest rates will not change,but the quantity of savings will decrease.

---

Definitions:

Prokaryotes

Microorganisms characterized by the absence of a distinct nucleus and other organelles, including bacteria and archaea.

Gene Pool

The complete set of unique alleles in a species or population.

Genetic Drift

Mechanism of evolution due to random changes in the allelic frequencies of a population; more likely to occur in small populations or when only a few individuals of a large population reproduce.

Adaptive Radiation

Rapid evolution of several species from a common ancestor into new ecological or geographic zones.