If the Interest Elasticity of Supply of Savings Is Zero

question 22

Multiple Choice

If the interest elasticity of supply of savings is zero, a comprehensive wealth tax will:

• A) increase the market rate of interest.
• B) reduce the income of savers.
• C) reduce the income of workers.
• D) both b and c

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Definitions:

Self-Realization

A process of fulfilling or achieving one's potential or true self, often considered the ultimate goal of human psychology.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Rogers

Carl Rogers was an influential American psychologist who founded the client-centered or person-centered approach to psychology, focusing on the importance of the self and the individual's experience.

Maslow

A psychologist best known for creating Maslow's hierarchy of needs, a theory in psychology comprising a five-tier model of human needs, from basic (physiological) to more complex (self-actualization) needs.