The Effects of Tax Incentive Programs Such as RRSP and TFSA

question 15

Multiple Choice

The effects of tax incentive programs such as RRSP and TFSA accounts suggest that these government programs designed to increase saving lead to

• A) a decrease in the private capital stock.
• B) decreased labour productivity.
• C) an increase in the standard of living.
• D) an increase in the real interest rate.

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Definitions:

Maintenance Rehearsal

A process of repeatedly verbalizing or thinking about a piece of information to keep it in short-term memory longer than the usual 20-second duration.

Levels of Processing

A theory in cognitive psychology that proposes that deeper levels of analysis produce more enduring memory encoding than shallow levels of analysis.

Memory Storage

The process of retaining information over time, encompassing how information is encoded, stored, and retrieved.

Duration

The length of time that something continues or exists.