Other things the same,an increase in taxes with no change in government purchases makes national saving
A)rise.The supply of loanable funds shifts right.
B)rise.The demand for loanable funds shifts right.
C)fall.The supply of loanable funds shifts left.
D)fall.The demand for loanable funds shifts left.

Question

Quizplus · Accepted Answer

An increase in taxes with no change in government purchases increases public saving, which is part of national saving. This leads to an increase in the supply of loanable funds, shifting it to the right.

Other Things the Same,an Increase in Taxes with No Change