Princess Buttercup has granted an investment tax credit in Florin.
How will the market for loanable funds be impacted and what will the effect be on the interest rate?
Choose 1 answer:
(A) The supply of loanable funds will increase; the interest rate will decrease
(B) The demand for loanable funds will decrease; the interest rate will not change
(c) The demand for loanable funds will increase; the interest rate will increase
D The supply of loanable funds will decrease; the interest rate will not change
(E) Both the supply and demand for loanable funds will increase; the effect on the interest rate is indeterminate
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