The Success of the "Save More Tomorrow" Program Assumes That

question 82

Multiple Choice

The success of the "Save More Tomorrow" program assumes that consumers:

• A)smooth consumption over their life cycles.
• B)save a constant fraction of their permanent incomes.
• C)require help controlling their desires for instant gratification.
• D)save only their transitory incomes.

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Definitions:

Subsidy

A grant or financial assistance provided by the government or an organization to support a business, market, or economic sector.

Selling Price

The amount of money for which goods or services are offered for sale to customers.

Laffer Curve

A theoretical representation of the relationship between tax rates and the amount of tax revenue collected by governments, indicating an optimal tax rate that maximizes revenue.