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Assume the government introduces a tax on your savings accounts (this includes all online savings accounts). Explain this effect has on the market for loanable
Assume the government introduces a tax on your savings accounts (this includes all online savings accounts). Explain this effect has on the market for loanable funds using a diagram. What happens to equilibrium quantity of loanable funds and equilibrium real interest rates?
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Impact of Tax on Savings Accounts on Loanable Funds Market A tax on savings accounts discourages saving by reducing the aftertax return for savers Thi...Get Instant Access to Expert-Tailored Solutions
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
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