Question: A decrease in the tax rate on interest earned by savers will have what effect on interest rates? Rates will rise as firms increase their

A decrease in the tax rate on interest earned by savers will have what effect on interest rates? Rates will rise as firms increase their demand for investment at the lower tax rates Rates will fall as consumers supply more savings due to the higher after-tax rate. Rates will fall as consumers withdraw savings to pay their taxes. Rates will rise because lower tax rates cause the economy to grow

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