An increase in the tax on interest income _ the supply of loanable funds and _ the equilibrium investment.

Name: An increase in the tax on interest income _ the supply of loanable funds and _ the equilibrium investment.
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An increase in the tax on interest income reduces the incentive to save, decreasing the supply of loanable funds, which in turn raises interest rates and decreases equilibrium investment.

An Increase in the Tax on Interest Income _ the Supply