If the market supply curve of savings is upward sloping, a tax on interest income will:

Name: If the market supply curve of savings is upward sloping, a tax on interest income will:
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A tax on interest income effectively reduces the return savers receive for their savings, which would decrease the quantity of savings supplied at any given interest rate. To restore equilibrium in the savings market, the interest rate must rise to encourage more savings, despite the tax.

If the Market Supply Curve of Savings Is Upward Sloping