Why Should the Tax Laws to Encourage Saving Remain as They

question 38

Multiple Choice

Why should the tax laws to encourage saving remain as they are?

• A)because a decrease in taxes would benefit the wealthy
• B)because tax rates on savings are relatively low
• C)because people would probably save more than if taxes were lowered
• D)because tax cuts might cause a budget deficit

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Definitions:

Surplus

The situation in which the quantity supplied of a good exceeds the quantity demanded, often leading to a decrease in prices.

Government Programs

Initiatives launched by the government aimed at achieving specific policy outcomes, ranging from social welfare to economic stimulation.

Surplus

An excess of supply over demand, leading to a situation where goods and services exceed their consumption or utilization.

Rent Control

Government policies or laws that limit the amount landlords can charge for renting out a property, intended to make housing more affordable.