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The Following Figure Shows Credit Demand and Credit Supply Curves

Question 75

Multiple Choice

The following figure shows credit demand and credit supply curves.
The following figure shows credit demand and credit supply curves.    -Refer to the figure above.Assume that the loanable funds market initially is in equilibrium at point B.If substantial tax credits are promised to firms that invest in domestic facilities,how will the equilibrium change? A)  Will shift to point C B)  Will shift to point A C)  Will shift to point D D)  Will remain at point B
-Refer to the figure above.Assume that the loanable funds market initially is in equilibrium at point B.If substantial tax credits are promised to firms that invest in domestic facilities,how will the equilibrium change?


A) Will shift to point C
B) Will shift to point A
C) Will shift to point D
D) Will remain at point B

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