Asked by
Brandon Henige
on Nov 16, 2024
Verified
If Congress instituted an investment tax credit, the demand for loanable funds would shift rightward.
Investment Tax Credit
A tax credit offered by the government to encourage businesses to invest in certain assets by allowing them to deduct a portion of the investment cost from their taxes.
Loanable Funds
The market in which savers supply funds to borrowers who want to borrow, influencing interest rates and overall economic activity.
- Analyze how fiscal policy influences the market for loanable funds, the rates of interest, and levels of investment.
Verified Answer
AP
Learning Objectives
- Analyze how fiscal policy influences the market for loanable funds, the rates of interest, and levels of investment.
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