1326EconomicsMedium
If the government increases investment tax credits and reduces taxes on the return to saving at the same time?
Athe real interest rate should fall
Bthe impact on the real interest rate is indeterminate
Cthe real interest rate should rise
Dthe real interest rate should not change
Correct answer
B. the impact on the real interest rate is indeterminate
Explanation
The correct answer is the impact on the real interest rate is indeterminate.