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Please help me find answer to this problem other than E. Thank you very much. 18. Suppose The government imposes a tax on new business

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Please help me find answer to this problem other than E.

Thank you very much.

image text in transcribed
18. Suppose The government imposes a tax on new business investment. Which of the following best describes the impact of this tax on the demand for loanable funds and interest rate? Demand for Loanable Funds 1 Interest Rate A. Decrease / no change B. Decrease I decrease C. Increase / no change D. Increase / decrease E. Increase / Increase

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