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3. According to the Loanable Funds Theory of interest rates, an increase in personal income tax rates A) Will decrease the savings rate B) Will decrease the supply of loanable funds C) Will increase interest rates D) All of the above 24. An increase in inflation causes the demand curve for loanable funds to shift to the and causes the supply curve to shift to the A) Bight; right B) Right; left C) Left; left D) Left; right 25. Of the following, the most likely effect of an increase in income tax rates would be to A) decrease the savings rate B) decrease the supply of loanable funds C) increase interest rates D) all.of the above 26. The equilibrium rate of interest as determined in the loanable funds theory of interest will rise if: A) the supply of loanable funds increases with the demand curve unchanged. B) the demand for loanable funds declines with supply unchanged C) the supply of loanable funds is unchanged but demand increases D) the demand for loanable funds is unchanged while the supply decreases E) none of the above 3. According to the Loanable Funds Theory of interest rates, an increase in personal income tax rates A) Will decrease the savings rate B) Will decrease the supply of loanable funds C) Will increase interest rates D) All of the above 24. An increase in inflation causes the demand curve for loanable funds to shift to the and causes the supply curve to shift to the A) Bight; right B) Right; left C) Left; left D) Left; right 25. Of the following, the most likely effect of an increase in income tax rates would be to A) decrease the savings rate B) decrease the supply of loanable funds C) increase interest rates D) all.of the above 26. The equilibrium rate of interest as determined in the loanable funds theory of interest will rise if: A) the supply of loanable funds increases with the demand curve unchanged. B) the demand for loanable funds declines with supply unchanged C) the supply of loanable funds is unchanged but demand increases D) the demand for loanable funds is unchanged while the supply decreases E) none of the above