An increase in the personal income tax on interest income


An increase in the personal income tax on interest income will:

A) Decrease desired saving because the expected after-tax real interest rate falls

B) Increase desired saving because the expected after-tax real interest rate rises

C) Decrease desired saving because the expected after-tax real interest rate rises

D) Increase desired saving because the expected after-tax real interest rate falls

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Business Economics: An increase in the personal income tax on interest income
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