Suppose the u. s. offered a tax credit for firms that built new factories in the u. s. then
a. the supply of loanable funds would shift rightward, initially creating a surplus of loanable funds at the original interest rate.
b. the demand for loanable funds would shift rightward, initially creating a shortage of loanable funds at the original interest rate.
c. the supply of loanable funds would shift rightward, initially creating a shortage of loanable funds at the original interest rate.
d. the demand for loanable funds would shift rightward, initially creating a surplus of loanable funds at the original interest rate.

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,500 are payable at the beginning of each year. each is a finance lease for the lessee. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) situation 1 2 3 4 lease term (years) 3 3 3 3 asset’s useful life (years) 3 4 4 6 lessor’s implicit rate (known by lessee) 14 % 14 % 14 % 14 % residual value: guaranteed by lessee 0 $ 5,000 $ 2,500 0 unguaranteed 0 0 $ 2,500 $ 5,000 purchase option: after (years) none 2 3 3 exercise price n/a $ 7,500 $ 1,500 $ 3,500 reasonably certain? n/a no no yes