Suppose the government were to replace the income tax with a consumption tax so that interest on savings was not taxed.The result would be that the interest rate
A)and investment both would increase.
B)and investment both would decrease.
C)would increase and investment would decrease.
D)would decrease and investment would increase.

Question

Quizplus · Accepted Answer

The Answer of Suppose the government were to replace the income tax with a consumption tax so that interest on savings was not taxed.The result would be that the interest rate
A)and investment both would increase.
B)and investment both would decrease.
C)would increase and investment would decrease.
D)would decrease and investment would increase.

Suppose the Government Were to Replace the Income Tax with a Consumption