In the loanable funds model, a reduction in the investment tax would create an Group of answer choices excess demand of funds at the initial equilibrium interest rate. This excess demand would lead to a rise in the interest rate. excess demand of funds at the initial equilibrium interest rate. This excess demand would lead to a fall in the interest rate. excess supply of funds at the initial equilibrium interest rate. This excess supply would lead to a rise in the interest rate. excess supply of funds at the initial equilibrium interest rate. This excess supply would lead to a fall in the interest rate.

Phoenix guitars is interested in pursuing backward integration to take greater ownership of the extraction of raw materials and production of components used in its signature line of guitars. although this approach would lower the overall cost of producing a guitar, the costs associated with producing electronic pickupsfor sound amplification are far greater than those associated with sourcing pickups from a reliable supplier. which of the following approaches is likely to produce superior results? a) invest in vertical integration despite the cost of producing pickups.b) abandon the idea of vertical integration entirely.c) pursue taper integration.d) introduce a budget line of guitars to diversify the firm's offerings.