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In the loanable funds model, assume the current administration increases the investment tax credit. How does this event impact real interest rates (r) and net

In the loanable funds model, assume the current administration increases the investment tax credit. How does this event impact real interest rates (r) and net capital outflow (NCO)?

r decreases, NCO decreases

r decreases, NCO increases

r increases, NCO decreases

r increases, NCO increases

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