A shift away from taxing asset income and toward taxing consumption would lead to:
A) a larger demand for loanable funds, a higher interest rate, and more investment spending.
B) a larger supply of loanable funds, a lower interest rate, and more investment spending.
C) a larger government budget deficit and more investment spending.
D) a smaller supply of loanable funds, a higher interest rate, and more investment spending.
Correct Answer:
Verified
Q104: Crowding out hampers the economy by:
A) decreasing
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Table: Investment
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Table: Investment
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Table: Investment
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