A Government Policy That Would Reduce the Saving Rate Is

question 30

Multiple Choice

A government policy that would reduce the saving rate is

• A)eliminating the social security system.
• B)giving tax breaks to increase the real return that savers receive.
• C)increasing the government budget surplus by cutting government spending.
• D)switching the tax system to tax consumption instead of income.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.