If other things are the same, will countries that tax saving less have lower or higher interest rates and investment than other countries?
A)lower interest rates and higher investment
B)lower interest rates and lower investment
C)higher interest rates and higher investment
D)higher interest rates and lower investment

Question

Quizplus · Accepted Answer

Countries that tax saving less encourage more saving, which increases the supply of loanable funds, leading to lower interest rates and higher investment.

If Other Things Are the Same, Will Countries That Tax