Which of the Following Statements Is Not Correct

question 376

Multiple Choice

Which of the following statements is not correct?

• A)Reducing taxes on interest income might encourage people to save more.
• B)Reducing taxes on interest income might reduce saving.
• C)A price increase will create income and substitution effects that will both always work to reduce consumption of the good.
• D)Utility is maximized when the marginal rate of substitution between any two goods equals the relative prices of the two goods.

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Definitions:

Labor And Talent

The workforce available for employment and their skills, abilities, and expertise in various domains.

Formal Investment

Financial contributions into a business or project, typically made by investors seeking a return and documented through formal agreements.

Start A Business

The process of undertaking financial, administrative, and operational activities to initiate a commercial enterprise.

Money

A medium of exchange in the form of coins and banknotes; used to purchase goods and services and measure the value of things.