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Suppose Congress instituted a subsidy program that provided reduced taxes if a company were to invest in its own infrastructure (new machinery, vehicles, etc).
What would happen in the loanable funds market?
Real interest rates fall, quantity of loans increase.
Real interest rates rise, quantity of loans increase.
Real interest rates rise, quantity of loans decrease.
Real interest rates fall; quantity of loans decrease.
Stasis: No shift of either curve; just a quantity change.