Suppose the Canadian government allowed taxpayers to earn their first $5000 of interest free of income tax. How would this shift the supply of, or demand for, loanable funds?
A) The supply of loanable funds would shift to the right.
B) The supply of loanable funds would shift to the left.
C) The demand for loanable funds would shift to the right.
D) The demand for loanable funds would shift to the left.
Correct Answer:
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