In The Loanable Funds Model, An Increase In An Investment Tax Credit Would Create A

(Correct Answer Below)

In The Loanable Funds Model, An Increase In An Investment Tax Credit Would Create A

te a a. shortage at the former equilibrium interest rate. This shortage would lead to a rise in the interest rate. b. shortage at the former equilibrium interest rate. This shortage would lead to a fall in the interest rate. c. surplus at the former equilibrium interest rate. This surplus would lead to a rise in the interest rate. d. surplus at the former equilibrium interest rate. This surplus would lead to a fall in the interest rate.
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a. shortage at the former equilibrium interest rate. This shortage would lead to a rise in the interest rate

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