Figure 26-4
This figure shows the loanable funds market for a closed economy. 
-Refer to Figure 26-4. Starting at point A, the enactment of an investment tax credit would likely cause the quantity of loanable funds traded to
A) increase to $180 and the interest rate to rise to 12% (point C) .
B) decrease to $60 and the interest rate to fall to 4% (point B) .
C) decrease to $60 and the interest rate to rise to 12% (point E) .
D) increase to $180 and the interest rate to fall to 4% (point D) .
Correct Answer:
Verified
Q215: In 2002 mortgage rates fell and mortgage
Q216: Figure 26-2
The figure depicts a supply-of-loanable-funds curve
Q217: If the nominal interest rate is 8
Q218: If the demand for loanable funds shifts
Q219: Figure 26-3
The figure shows two demand-for-loanable-funds curves
Q220: A larger budget deficit
A)raises the interest rate
Q221: Figure 26-3
The figure shows two demand-for-loanable-funds curves
Q223: Figure 26-3
The figure shows two demand-for-loanable-funds curves
Q224: Figure 26-4
This figure shows the loanable funds
Q225: Figure 26-3
The figure shows two demand-for-loanable-funds curves
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