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If a reform of the tax laws discourages saving by taxing


If a reform of the tax laws discourages saving by taxing interest income, according to the Loanable Funds model we would expect

higher interest rates and greater investment.

higher interest rates and less investment.

lower interest rate and less investment.

lower interest rates and greater investment.

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Business Economics: If a reform of the tax laws discourages saving by taxing
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