Which of the Following Best Describes What Would Happen If

question 133

Multiple Choice

Which of the following best describes what would happen if all private retirement accounts were taxed?

• A)Consumption expenditures would decline, driving up interest rates and resulting in investment expenditures declining.
• B)Consumption expenditures would increase, driving up interest rates and resulting in investment expenditures declining.
• C)Government expenditures would increase, causing consumption expenditures to decline, which would result in interest rates declining, which would cause investment expenditures to rise.
• D)Consumption expenditures would decline, driving down interest rates and resulting in investment expenditures increasing.
• E)Consumption expenditures would increase, causing government spending to increase, which would result in a decline in investment expenditures.

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