An Inflation-Induced Increase in the Effective Tax Rate on Interest

question 13

Multiple Choice

An inflation-induced increase in the effective tax rate on interest income and capital gains results in

• A)a leftward shift of the saving schedule.
• B)a rightward shift of the saving schedule.
• C)no shift of the saving schedule.
• D)a rightward shift of the investment schedule.

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Definitions:

Excessive Urination

The condition of urinating more frequently than usual, medically known as polyuria.

Night

The period of darkness between sunset and sunrise when the sky is not illuminated by the sun, characterized by decreased visibility and activity for many organisms.

Ditropan XL

A brand name for oxybutynin, a medication used to treat symptoms of overactive bladder.

Bladder

An organ that stores urine produced by the kidneys before it is excreted from the body.