If the government offers an investment tax credit,other things equal,it is likely that interest rates would fall.

Question

Quizplus · Accepted Answer

An investment tax credit reduces the tax burden on investors, making investments more attractive. This, in turn, increases demand for investment funds, leading to an increase in interest rates. Therefore, if the government offers an investment tax credit, it is unlikely that interest rates would fall.

If the Government Offers an Investment Tax Credit,other Things Equal,it