A interest rates would rise and savings would fall b

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*a. Interest rates would rise and savings would fall. b. Both interest rates and savings would rise. c. Both interest rates and savings would fall. d. Interest rates would fall and savings would rise.
136. What would most likely happen in the market for loanable funds if the government were to decrease the tax on interest income?
137. If Parliament reduced the tax rate on interest income, what would most likely happen to investment and saving?
138. Suppose a country has a consumption tax that is similar to a provincial sales tax. If its government eliminates the consumption tax and replaces it with an income tax that includes an income tax on interest from savings, what would most likely happen?
139. Suppose the Canadian government allowed taxpayers to earn their first $5000 interest free of income tax. How would this shift the supply of, or demand for, loanable funds? *a. The supply of loanable funds would shift to the right. b. The supply of loanable funds would shift to the left. c. The demand for loanable funds would shift to the right. d. The demand for loanable funds would shift to the left.
140. If other things are the same, will countries that tax less on saving have lower or higher interest rates and investment than other countries?
141. Suppose that Parliament were to institute an investment tax credit. What would most likely happen in the market for loanable funds?

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