What would most likely happen in the market for loanable funds if the government were to decrease the tax rate on interest income?

Question

Quizplus · Accepted Answer

Decreasing the tax rate on interest income makes saving more attractive, increasing the supply of loanable funds as people are more willing to lend their money. However, it does not directly affect the demand for loans, which is primarily driven by borrowers' needs and the interest rate they face.

What Would Most Likely Happen in the Market for Loanable