Which of the Following Policies Would Be Most Likely to Encourage

question 108

Multiple Choice

Which of the following policies would be most likely to encourage households to save more?

• A) Significant reductions in the social safety net
• B) Increasing social security benefits to all recipients,regardless of their contribution into the system
• C) Elimination of the tax deduction on individual retirement account (IRA)contributions
• D) Replacement of sales and excise taxes with an income tax
• E) Elimination of government insurance of bank deposits

---

Definitions:

Sales On Account

Transactions where goods are sold but payment is deferred to a later date.

Cost Of Goods Sold

The immediate expenses related to the manufacturing of products sold by a business, encompassing costs for both materials and labor.

Accounts Receivable Turnover

A financial metric indicating how often a company collects its average accounts receivable balance in a given period.

Financial Data

Information related to the financial performance and position of a company, such as balance sheets, income statements, and cash flow statements.