The Diagram Below Show the Market for Financial Capital Assuming

The diagram below show the market for financial capital assuming that national income is constant at potential GDP,Y*. FIGURE 25-2 Refer to Figure 25-2.Suppose national saving is reflected by NS₀ and investment demand is reflected by I₀^D.Now suppose the government implements a revenue-neutral tax policy that encourages investment.What is the effect on the quantity of national saving?

A) There is no effect on NS or I^D and the quantity of national saving supplied remains at I*.
B) National saving shifts to NS₁,and the quantity of national saving supplied rises to I₂.
C) Investment demand shifts to I₁^D and the quantity of national saving supplied rises to I₁.
D) Investment demand shifts to I₁^D,national saving shifts to NS₁,and the quantity of national saving rises to I₃.
E) National saving shifts to NS₁,investment demand shifts to I₁^{D,and the quantity of national saving rises to} I1.