Which of the Following Would Likely Increase Private Saving

question 30

Multiple Choice

Which of the following would likely increase private saving?

• A)Both expansion of IRA type accounts and a consumption tax.
• B)Expansion of IRA type accounts,but not a consumption tax.
• C)A consumption tax,but not expansion of IRA type accounts.
• D)Neither expansion of IRA type accounts nor a consumption tax.

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Definitions:

Authorized Capital Stock

As stated in its charter, the number of shares of capital stock (common and preferred) that a corporation can sell.

Issued Capital Stock

Stock that the corporation issues for assets or services contributed by the stockholders.

Mutual Agency

A principle in partnership where each partner is fully authorized to act on behalf of the partnership, making decisions that bind all parties.