An increase in taxes on interest income supply of loanable funds curve and the demand for loanable funds curve.

a) shifts; does not shift
b) does not shift; shifts
c) does not shift; does not shift
d) shifts; shifts

A

Explanation:

An increase in taxes on income from loans would mean that the cost of lending has gone up for the people who are willing to lend. This in turn reduces the profits from lending and thus lenders consider other more profitable opportunities to invest.

This reduces the amount available for lending as it is now more costly. This thus shifts the supply of loanable funds curve to the left, hence reducing the amount available for lending at any given interest rate.

As for the demand of funds, it is reduced following the shifted equilibrium but it does not shift.

Hope that helps.

1 i am shifting 2 i am shifting 3 i am shifting 4 i- *goes on until i feel like i am floating*

Explanation:

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy