The Canadian Government Introduced the Tax- Free Savings Account (TFSA)in

The Canadian government introduced the Tax- Free Savings Account (TFSA) in 2009,which allows Canadians to earn tax- free investment returns on a limited amount of savings each year.One objective is to increase the total supply of saving in the economy.Why might a policy such as this not have the desired effect on the economy?

A) The supply of saving will increase only in response to a decrease in the interest rate.
B) The introduction of TFSAs will divert financial capital away from saving and toward investment.
C) The supply of saving will increase only in response to an increase in the pre- tax interest rate.
D) The supply of savings in general can increase only by income growth or population growth.
E) The funds deposited to a TFSA could simply be substituted from other saving that would happen anyway.