Solved

The Canadian Government Introduced the Tax-Free Savings Account (TFSA)in 2009,which

Question 84

Multiple Choice

The Canadian government introduced the Tax-Free Savings Account (TFSA) in 2009,which allows Canadians to earn tax-free investment returns on a limited amount of savings each year.In theory,and all else remaining equal,what do we expect the effect of such a policy to be on the market for financial capital?


A) The investment demand curve shifts right,the equilibrium interest rate rises and investment rises.
B) The investment demand curve shifts left,the equilibrium interest rate falls and investment falls.
C) The supply of savings curve shifts right,the equilibrium interest rate falls and investment increases.
D) The supply of saving curve shifts left,the equilibrium interest rate rises and investment decreases.
E) There will be no effect on the market for financial capital.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents