-Refer to Figure 9-3.The elimination of an investment tax credit that decreases the demand for loanable funds from D2 to D1 will decrease investment spending by
A) $400 billion and leave the interest rate unchanged
B) $100 billion and leave the interest rate unchanged
C) $100 billion and decrease the interest rate by 2 percentage points
D) $200 billion and leave the interest rate unchanged
E) $500 billion and decrease the interest rate by 2 percentage points
Correct Answer:
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