An increase in taxes on interest income supply of loanable funds curve and the demand for loanable funds curve.

a) shifts; does not shift
b) does not shift; shifts
c) does not shift; does not shift
d) shifts; shifts

A

Explanation:

An increase in taxes on income from loans would mean that the cost of lending has gone up for the people who are willing to lend. This in turn reduces the profits from lending and thus lenders consider other more profitable opportunities to invest.

This reduces the amount available for lending as it is now more costly. This thus shifts the supply of loanable funds curve to the left, hence reducing the amount available for lending at any given interest rate.

As for the demand of funds, it is reduced following the shifted equilibrium but it does not shift.

Hope that helps.

1 i am shifting 2 i am shifting 3 i am shifting 4 i- *goes on until i feel like i am floating*

Explanation:

answer(d) encourage cooperation by improving the chances of mutually agreeable transactions;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.