A Reduction in the Tax Rate on Income from Saving

question 19

Multiple Choice

A reduction in the tax rate on income from saving would

• A)most directly benefit the poor in the short run.
• B)increase real wages over time.
• C)decrease the capital stock over time.
• D)decrease productivity over time.

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Definitions:

Internal Validity

The degree to which a study or experiment accurately demonstrates a causal relationship between the variables being tested, without the influence of external factors.

External Validity

The extent to which the findings of a study can be generalized to other settings, populations, or time periods.

Double-masked

A study design where neither the participants nor the experimenters know who is receiving a particular treatment, used to prevent bias.

Epidemiological

Relating to the study of how diseases affect the health and illness of populations.