What Happens When Interest Income from Savings Is Taxed

Multiple Choice

What happens when interest income from savings is taxed

A) For the poor people, more will be saved than without the tax to make up for what is lost in taxes.
B) For the rich people, more will be saved than without the tax to make up for what is lost in taxes.
C) For the rich people, less will be saved than without the tax since tax lowers the return on income.
D) For the poor people, less will be saved without tax since tax lowers the cost of investment.