Question

If Congress instituted an investment tax credit a. it would make buying bonds more desirable, so the demand for loanable funds would shift. b. it would make buying capital goods more desirable, so the demand for loanable funds would shift. c. it would make buying bonds more desirable, so the supply of loanable funds would shift. d. it would make buying capital goods more desirable, so the supply of loanable funds would shift.

Answer 1

Answer:

If Congress instituted an investment tax credit, it would make buying capital goods more desirable, so the demand for loanable funds would shift.

Explanation:

Buying of capital goods becomes more desirable if Congress institutes an investment tax credit, so the demand for loanable funds would shift because

it has been  observed that an investment tax credit for businesses to expand usually results into the demand for loanable funds to increase