Question

Other things the same, an increase in taxes with no change in government purchases makes national saving a. rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply of loanable funds shifts left. d. fall. The demand for loanable funds shifts left.

Answer 1

C

Step-by-step explanation:

Loanable funds is the total amount of money individuals in an economy save and lend out out to borrowers

Increase in taxes would decrease the benefits of saving and as a result, national savings would reduce

If national savings reduce, the supply of loanable funds would also reduce. this would shift the supply curve to the left