A government would like to increase the level of investment in the economy. To do so it decides to subsidize investment spending by firms and finances it by raising taxes on interest income received from savings. As a result of these policy changes

A.Interest rates in the economy will increase but the effect on investment is ambiguous.

B.Investment in the economy will increase but the effect on interest rates is ambiguous.

C.Interest rates in the economy will decrease but the effect on investment is ambiguous.

D.Investment in the economy will decrease but the effect on interest rates is ambiguous.