A Reduction in the Tax Rate on Income from Saving

question 19

Multiple Choice

A reduction in the tax rate on income from saving would

• A)most directly benefit the poor in the short run.
• B)increase real wages over time.
• C)decrease the capital stock over time.
• D)decrease productivity over time.

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Definitions:

Endosymbiosis

A theory explaining the origin of eukaryotic cells from prokaryotic organisms through a symbiotic relationship.

Chloroplast

A type of organelle found in plant cells and some algae, which is the site of photosynthesis and responsible for producing energy through light.

Thylakoid Membrane

The thylakoid membrane is a component of chloroplasts that houses the machinery for the light reactions of photosynthesis, including the chlorophyll pigments.

Endosymbiotic Theory

Explanation of the evolution of eukaryotic organelles by phagocytosis of prokaryotes.