Question: If fiscal policy dictates a decrease in the tax rate across the board (i.e. across all tax payers, regardless of income), holding the demand for
If fiscal policy dictates a decrease in the tax rate across the board (i.e. across all tax payers, regardless of income), holding the demand for loanable funds constant; the supply of loanable funds curve will most likely:
| A. | shift left and there will be downward pressure on equilibrium interest rates.
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| B. | shift right and there will be downward pressure on equilibrium interest rates.
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| C. | shift left and there will be upward pressure on equilibrium interest rates.
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| D. | shift right and there will be upward pressure on equilibrium interest rates. |
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