Answer Happy

question will save this response. Question 22 Other things equal, what would you expect to see in the market for savings and investment when a tax is imposed on interest earned? Supply of savings decreases, equilibrium interest rate increases to a level below the interest rate of indifference Supply of savings increases, equilibrium interest rate decreases to a level above the interest rate of indifference El Supply of savings decreases, equilibrium Interest rate increases to a level above the interest rate of indifference Od Supply of savings increases, equilibrium Interest rate decreases to a level below the interest rate of indifference Moving to another question will save this response