Other Things Being Equal, All of the Following Government Policies

question 77

Multiple Choice

Other things being equal, all of the following government policies are likely to increase national saving except:

• A) decreasing taxes on savings accounts.
• B) running a budget deficit.
• C) running a budget surplus.
• D) retiring part of the national debt.

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Definitions:

Variable Manufacturing Cost

Costs that fluctuate with the level of production output, such as raw materials and direct labor.

Fixed Manufacturing Cost

Overheads that do not change with the level of manufacturing output, including salaries of permanent staff and rent.

Annual Impact

The effect or influence that something has over the course of a year, often used in the context of financial, environmental, or social effects.

Net Operating Income

The total profit of a business after subtracting operating expenses but before deducting taxes and interest.