What is the effect of a rise in the income tax on interest income? A rise in the income tax on interest income ______. A. increases the before-tax interest rate paid by borrowers and decreases borrowing and investment B. increases the after-tax interest rate received by lenders and increases saving C. decreases the before-tax interest rate paid by borrowers and increases borrowing and investment D. decreases the after-tax interest rate received by lenders and increases lendin

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A: MPC is marginal propensity to consume. It is percentage of income that is spent on consumption.

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A: Elasticity measures the responsiveness of quantity demanded to changes in price level

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