Using this information:

Suppose the economy of Bostonia is at full employment. The government of Bostonia raises the tax rate on household interest earnings.

how can i answer this?

Given the real interest rate change identified in Problem 8, answer the following questions.

(a) What is the short-run effect on aggregate demand? Explain.

(b) What is the long-run effect on potential real gross domestic product in Bostonia? Explain.