What Is the Effect of an Increase in the Tax

Multiple Choice

What is the effect of an increase in the tax rate on interest income on the supply of and the demand for loanable funds?

A) The supply curve shifts to the left, while the demand curve remains unchanged.
B) The supply curve shifts to the right, while the demand curve remains unchanged.
C) The supply curve remains unchanged, while the demand curve shifts to the left.
D) The supply curve remains unchanged, while the demand curve shifts to the right.