Consider the U. S. market for loanable funds in a closed-economy model. Answer the following questions about each scenario. The government increases the capital gains tax, which taxes earnings on assets in the stock market. This will shift the (Click to select) demand for loanable funds to the left supply of loanable funds to the left demand for loanable funds to the right supplyof loanable funds to the right, the interest rate and equilibrium amount of borrowing will (Click to select) increase and decrease respectively both increase decrease and increase respectively both decrease.
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