1.(assume consumption lev

1.(assume consumption lev

1.(assume consumption levels remain unchanged) Gov. wish to gain more public approval and decreases personal income tax rate for all levels,replace these revenues with higher corporate income tax on investment.Following to occur in the loanable funds market? a.decrease in the supply of loanable fund & decrease in demand for loanable funds b.increase in both the supply and demand of loanable funds c.increase in supply of loanable funds, no change in demand for loanable funds d.increase in supply of loanable funds,decrease in the demand for loanable funds 2.Fill in A,B,C as below: Gov. wan to stop foreign investment from flowing into the country , but at the same time they decide to tighten their budget and run a surplus. The deficit will cause the demand for loanable funds curve to increase,decrease, not change (a____)? and if foreign investment is stopped then interest rates will be higher than,lower than,the same as?(b____), it would with the foreign capital inflow& overall investment would be higher than, the same as ?(c____) it would be with foreign capital inflows.

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