One of the Primary Research Results in Tax Policy Analysis

question 89

Multiple Choice

One of the primary research results in tax policy analysis over the last 20 years is that

• A)an increase in interest rates will increase saving.
• B)an increase in interest rates will decrease saving.
• C)lowering taxes on interest income will increase saving.
• D)None of the above.

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Definitions:

Normative Economic Statement

Statements that reflect opinions, beliefs, or values about what the economy should be like, rather than what it actually is.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Energy Prices

The cost of energy resources, such as oil, gas, and electricity, which can fluctuate based on supply and demand.

Automobile Companies

Businesses involved in the design, development, manufacturing, marketing, and selling of motor vehicles.