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Starting at point A, a change in tax laws that encouraged households to save more would likely cause the quantity of loanable funds traded to

Starting at point A, a change in tax laws that encouraged households to save more would likely cause the quantity of loanable funds traded to a. decrease to $80 and the interest rate to fall to 4% (point B). b. increase to $160 and the interest rate to fall to 4% (point D). c. increase to $160 and the interest rate to rise to 7% (point C). d. decrease to $80 and the interest rate to rise to 7% (point E)

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