Which of the Following Is Not an Argument in Favor

question 302

Multiple Choice

Which of the following is not an argument in favor of reforming the tax laws to encourage saving?

• A)Saving is a key determinant of long-run prosperity.
• B)Current tax laws discourage saving for the purpose of leaving a large bequest.
• C)The substitution effect of a higher return to saving may be about equal to the income effect of a higher return to saving.
• D)The tax code currently taxes some forms of capital income twice.

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Definitions:

Foundation

An entity, often a nonprofit organization, that provides funding and support for charitable activities or research in specific areas of interest.

Expressions Given Off

Nonverbal cues or signals that are unconsciously emitted by individuals, revealing their emotions or attitudes.

Manipulate

To control or influence a person, situation, or system cleverly, unfairly, or unscrupulously.

Thomas Theorem

The sociological theory stating that if people define situations as real, they are real in their consequences.