If the Government Wanted to Give People a Negative Direct

question 5

Multiple Choice

If the government wanted to give people a negative direct incentive not to save money,what would be the appropriate policy?

• A) providing individuals a subsidy to save their money
• B) providing funding for an advertising campaign encouraging people to spend more money
• C) informing individuals that saving money causes people not to spend money,which will cause them to lose their jobs
• D) imposing a tax on individuals for saving their money
• E) informing consumers about all that they could buy with their money with the hope that they spend more

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Definitions:

Invested Assets

Refers to resources allocated by individuals or entities into various types of investment vehicles aiming for future returns.

Service Department

An organizational unit that provides support and services to other units within the organization, rather than producing goods or services for external customers.

Internal Service Departments

Departments within an organization that provide essential services to other departments rather than external customers, such as IT support or human resources.

Inventory Control

The processes and procedures used to manage the ordering, storage, and use of components that a company will use in the production process or the management of stock available for sale.