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1|]. Consumption tax and investment A government decides to remove a consumption tax and replace it with a tax on savings. 111is will have an

1|]. Consumption tax and investment A government decides to remove a consumption tax and replace it with a tax on savings. 111is will have an impact on the market for loanahle funds. What can he expected to happen to the interest rate and to investment? 0 Interest rate INCREASES; Investment DECREASES 0 Interest rate DECREASES: Investment INCREASES 0 Interest rate INCREASES; Investment INCREASES 0 Interest rate DECREASES: Investment DECREASES

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