MCQOPTIONS
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| 1. |
If the government increases investment tax credits and reduces taxes on the return to saving at the same time ? |
| A. | the real interest rate should fall |
| B. | the real interest rate should rise |
| C. | the impact on the real interest rate is indeterminate |
| D. | the real interest rate should not change |
| Answer» D. the real interest rate should not change | |