Interest Earnings from Accumulated Savings Are Subject to Personal Income

question 72

Multiple Choice

Interest earnings from accumulated savings are subject to personal income tax in Canada. As a result,

• A) total national saving is higher than it otherwise would be.
• B) the interest paid on savings accounts increases.
• C) taxes applied to this income are regressive.
• D) individuals have a reduced incentive to save.
• E) there will be more capital accumulated for the economy.

---

Definitions:

Trust/Low Distrust

A state of confident expectation in someone's character, ability, strength, or truth, or its absence resulting in skepticism and caution.

Intractable Negotiation

A negotiation perceived as impossible to resolve due to deep-seated disagreements, high complexities, or significant power imbalances.

De-escalates

The process of reducing the intensity or severity of a conflict, situation, or potentially harmful behavior.

Self-Promotion

The act of advocating for oneself to advance personal goals, increase visibility, or improve status and opportunities.