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Scenario 1: Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially, the interest income earned on bonds or depositsis taxed at a rate of 18%. Now suppose there is an increase in the tax rate on interest income, from 18% to 22%.Shift the appropriate curve on the graph to reflect this changeThis change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds toV and thelevel of investment spending to
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