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 should:

A.shift left and there will be upward pressure on equilibrium interest rates.

B.shift right and there will be upward pressure on equilibrium interest rates.

C.shift right and there will be downward pressure on equilibrium interest rates.

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