(Figure: Loanable Funds Contraction) Figure: Loanable Funds Contraction 
A) The economy is expected to go into a recession.
B) An existing investment tax credit is abolished.
C) The government ceases taxing interest earnings.
D) Consumers display stronger time preference.
Correct Answer:
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Q55: Q57: Firms primarily raise money by using which Q58: What is a frequent temporary government solution Q61: How do banks engage in specialization and Q62: What is the potential of a bond Q64: Which of the following is an example Q65: The crowding out effect of government borrowing Q105: When individuals become more willing to save,the: Q112: When business firms become more pessimistic about Q159: Stock shares represent _ and bonds represent
A)
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