(Figure: The Market for Loanable Funds II) Use Figure: The Market for Loanable Funds II. Other things equal, an increase in taxes on savings and investment income will shift _____ to the _____ and _____ the neutral real interest rate.
A) demand; right; increase
B) demand; right; increase.
C) demand; left; decrease
D) demand; left; decrease.
E) supply; right; decrease
F) supply; right; decrease.
G) supply; left; increase.
H) supply; left; increase
Correct Answer:
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