What happens to the investment line if the government institutes a tax break for funds invested?

Name: What happens to the investment line if the government institutes a tax break for funds invested?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the government institutes a tax break for funds invested, the cost of investing decreases, which makes investing more attractive. This, in turn, leads to an increase in the amount of funds invested at each interest rate level, causing the investment line to shift to the right.

What Happens to the Investment Line If the Government Institutes