what-is-the-relationship-between-lower-taxes-increased-savings-and-the-supply-of

Question

What is the relationship between lower taxes, increased savings, and the supply of loanable funds?

Accepted Answer

Lower taxes increase savings, which in turn increases the supply of loanable funds.

Answer

Lower taxes increase savings, but decrease the supply of loanable funds.

Answer

Lower taxes have no impact on savings or the supply of loanable funds.

Answer

Lower taxes decrease savings, which in turn decreases the supply of loanable funds.