Which of the following is not an argument by those who oppose tax-law changes to encourage saving? O A. Saving is not very responsive to changes in the tax rate. O B. Saving is not an important determinant of a nation's ability to produce output. OC. Reducing the budget deficit instead of changing the tax laws could raise saving. D. Changes in the tax laws to induce saving would distribute the tax burden less fairly.

Which of the following is not an argument by those who oppose tax-law changes to encourage saving? O A. Saving is not very responsive to changes in the tax rate. O B. Saving is not an important determinant of a nation's ability to produce output. OC. Reducing the budget deficit instead of changing the tax laws could raise saving. D. Changes in the tax laws to induce saving would distribute the tax burden less fairly.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

Question

Which of the following is not an argument by those who oppose tax-law changes to encourage saving?
O A. Saving is not very responsive to changes in the tax rate.
O B. Saving is not an important determinant of a nation's ability to produce output.
OC. Reducing the budget deficit instead of changing the tax laws could raise saving.
O D. Changes in the tax laws to induce saving would distribute the tax burden less fairly.

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