uppose the government changes the tax code, allowing individuals to reduce their taxable income if they save money in registered retirement savings plans (RRSPs). Your response should answer the following questions: State and explain which loanable funds curve would this policy affect? Which way would the loanable funds curve shift?  What would be the impact on interest rates?  Draw the loanable funds diagram to illustrate your answers for a to c.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter21: Financial Markets, Saving, And Investment
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Suppose the government changes the tax code, allowing individuals to reduce their taxable income if they save money in registered retirement savings plans (RRSPs). Your response should answer the following questions:

State and explain which loanable funds curve would this policy affect?

Which way would the loanable funds curve shift? 

What would be the impact on interest rates? 

Draw the loanable funds diagram to illustrate your answers for a to c. 

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