When Interest Income from Savings Is Taxed

question 234

Multiple Choice

When interest income from savings is taxed,

• A) people will save more to make up for what is lost in taxes.
• B) people will save the same amount as they would have without the tax.
• C) people will save less than they would without the tax.
• D) None of the above is correct since the government would not tax interest on savings.

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Definitions:

Epithelial Tissue

A type of tissue that lines the outer surfaces of organs and blood vessels, as well as the inner surfaces of cavities in many internal organs.

Nerve

Bundle of long axons outside the central nervous system.

Collagenous Fibers

Strong, flexible protein fibers found in connective tissue that provide support and structure to various body parts.

Elastic Fibers

Part of the connective tissue in the body that provides elasticity and resilience to structures like the skin, lungs, and blood vessels.