An increase in personal income tax on interest income will

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An increase in the personal income tax on interest income will:

A) Decrease desired saving because the expected after-tax real interest rate falls

B) Increase desired saving because the expected after-tax real interest rate rises

C) Decrease desired saving because the expected after-tax real interest rate rises

D) Increase desired saving because the expected after-tax real interest rate falls

Reference no: EM131101247

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