Investment tax credit (that is, a tax exception to firms that are investing on physical capital) on interest rate and quantity of loanable funds (government funds)

Explain clearly using a well labelled diagram (saving and investment curves) the effects of the following

a) Investment tax credit (that is, a tax exception to firms that are investing on physical capital) on interest rate and quantity of loanable funds (government funds). (10 mrks)

b) Government budget deficit of interest rate and quality of loanable fund. (10 mrks)

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Investment tax credit (that is, a tax exception to firms that are investing on physical capital) on interest rate and quantity of loanable funds (government funds)

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