Answer:
C: The Internal Revenue Service (IRS) .
Answer:
The equilibrium quantity of loanable funds to rise and the equilibrium interest rate to fall.
Explanation:
In order to understand this question,let us define one or two terms in the question. I will start with net tax. So, what is net tax?.
Net taxes shows how or is a measurement of how taxes flows in and how taxes flows out . Assuming in a specific country, let us say country A collected taxes which amounts to $5 billion in the year 2018 and in that same year the country spent $4 billion on expenditures and things like that, then the net taxes = $5 billion - $4 billion = $1 billion.
So, let us go back to the question. We are told that the expenditures on goods and services and net taxes both decrease and expenditures fall by more than net taxes the effect of this on budget deficit is that the equilibrium interest rate falls.
