If Congress increased the tax rate on interest income,investment
A)would increase and saving would decrease.
B)would decrease and saving would increase.
C)and saving would increase.
D)and saving would decrease.

Question

Quizplus · Accepted Answer

Increasing the tax rate on interest income would result in a decrease in investment and saving because individuals would have less incentive to save and invest their money if they are being taxed at a higher rate. This would lead to a decrease in overall economic growth and activity.

If Congress Increased the Tax Rate on Interest Income,investment