Chrome File Edit View History Bookmarks People Tab Window Help 91OF 3479rpm 7 7 )) 100% 27 Sat Feb 27 5:54:44 PM Monique Dinky Q ... Spotify - Lik X (44) 2020 Ki X will Hear the trac X Course Hero X Aplia: Assign X C Homework ( X G 3. Productiv X Homework + X " MindTap - C X + ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5981411816101690856962438939&elSBN=9780357133576&id=1021766706&snapsh... Paused Update : 328894 Monique v CENGAGE | MINDTAP Q Search this course ? 1_o.jpg My Home Homework (Ch 26) X Courses The following graph shows the market for loanable funds. For each of the given scenarios, adjust the appropriate curve on the graph to help you 196809 complete the questions that follow. Treat each scenario separately by resetting the graph to its original state before examining the effect of each 58_n.jpg Catalog and Study Tools individual scenario. (Note: You will not be graded on any changes you make to the graph.) A-Z Partner Offers Rental Options ss- ? ent.pdf College Success Tips Career Success Tips e Doc ? Help Demand Give Feedback 141 3 Supply Supply bong it 2 png INTEREST RATE (Percent) Demand 20 New yc At LOANABLE FUNDS (Billions of dollars) Docs. estmt_2020-12-16.pdf estmt_2021-01-14.pdf estmt_2021-02-11.pdf Show All X 27 1 7 6 4 6 7 X N O W X Lr Pr PS Aid IC Fl Ai DWChrome File Edit View History Bookmarks People Tab Window Help 95OF 3480rpm 7 ) 100% 27 Sat Feb 27 5:55:07 PM Monique Dinky Q ... Spotify - L X (44) 2020 x i Hear the t X Course He X Aplia: Ass X C Homework X G 3. Product X Homework X MindTap - X Aplia: Eco X + ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5981411816101690856962438939&eISBN=9780357133576&id=1021766706&snapsh... Paused Update : 328894 Monique v CENGAGE | MINDTAP Q Search this course ? 1_o.jpg My Home Homework (Ch 26) X Courses 196809 58_n.jpg Catalog and Study Tools Scenario 1: Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially, the interest income earned on bonds or deposits is taxed at a rate of 20%. Now suppose there is an increase in the tax rate on interest income, from 20% to 25%. A-Z Partner Offers Rental Options Shift the appropriate curve on the graph to reflect this change. ss- ent.pdf College Success Tips This change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to and the level of investment spending to Career Success Tips Scenario 2: An investment tax credit effectively lowers the tax bill of any firm that purchases new capital in the relevant time period. Suppose the e Doc ? Help government implements a new investment tax credit. Give Feedback Shift the appropriate curve on the graph to reflect this change. The implementation of the new tax credit causes the interest rate to and the level of investment to bong it 2 png Scenario 3: Initially, the government's budget is balanced; then the government significantly increases spending on national defense without changing taxes. national saving. 20 New This change in spending causes the government to run a budget , which yc A+ Shift the appropriate curve on the graph to reflect this change. This causes the interest rate to the level of investment spending. Docs. estmt_2020-12-16.pdf estmt_2021-01-14.pdf estmt_2021-02-11.pdf Show All X 27 18 7 6 4 8 7 X N O W X Lr Pr Ps A id Ic Fl Ai DW
