If the federal government decided to implement a special tax incentive to encourage household savings, we can expect that
demand for loanable funds will increase.
supply of loanable funds will increase.
supply of loanable funds will decrease.
supply of loanable funds will decrease and demand for loanable funds will increase.
loanable funds will not be impacted by this action.

Question

19-12-2022
Business

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If the federal government decided to implement a special tax incentive to encourage household savings, we can expect that
demand for loanable funds will increase.
supply of loanable funds will increase.
supply of loanable funds will decrease.
supply of loanable funds will decrease and demand for loanable funds will increase.
loanable funds will not be impacted by this action.

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tutorconsortium271 tutorconsortium271 · Answer 1 · 2022-12-22T09:16:58+01:00

We can anticipate an increase in the quantity of loanable money is if federal government decides to create a specific tax incentive to boost household savings.

What else do you imply by loanable funds?

Loanable money is described as being available for borrowing. Funds available for lending are made up of household savings and bank loans. "Loanable money" refers to all forms of credit, such as leases, bonds, and term deposits.

Which are the primary loanable funding sources?

The origin of lending cash is individuals and groups such as businesses and governments, who have also decided not to spend any more of their own money but instead to save it for profitable projects. An investing strategy is to offer borrowers money at a borrowing rate.

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