The repeal of a previously existing tax credit causes borrowers to demand less loanable funds. Because the quantity of loanable funds pressure on interest rates. This change in demanded is now less than interest rates causes a(n) decrease the quantity of loanable funds supplied, there is downward in the quantity of loanable funds supplied.

The repeal of a previously existing tax credit causes borrowers to demand less loanable funds. Because the quantity of loanable funds pressure on interest rates. This change in demanded is now less than interest rates causes a(n) decrease the quantity of loanable funds supplied, there is downward in the quantity of loanable funds supplied.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter21: Financial Markets, Saving, And Investment

Section: Chapter Questions

Problem 9P

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