Which of the Following Is Not an Argument Made by Those

question 354

Multiple Choice

Which of the following is not an argument made by those who oppose reforming the tax laws to encourage saving?

• A)A public budget surplus can raise national saving.
• B)The substitution effect of a higher return to saving may be about equal to the income effect of a higher return to saving.
• C)Low-income households save a larger fraction of their income than high-income households.
• D)Tax cuts might cause a budget deficit.

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Definitions:

Warranty of Title

A guarantee by a seller to a buyer that the seller has the right to transfer ownership and no undisclosed encumbrances exist.

Patent Violation

The infringement of the exclusive rights attached to a patent, without permission from the patent holder.

Implied Warranty

A legal concept that guarantees a product will meet certain standards of quality and reliability without explicitly stating them in a contract.

Merchantability

A warranty that a product will meet reasonable expectations of quality and functionality at the time of sale.