What Is the Main Argument Which Explains Why the Data

question 19

Multiple Choice

What is the main argument which explains why the data do not show a positive relation between the deficit producing tax cuts in the early eighties savings rates?

• A)People will increase savings to "finance" debt repayment by future generations.
• B)People will increase consumption to "finance" debt repayment by future generations.
• C)Savings is determined by uncertain events,the timing of future illnesses and death.
• D)Savings is determined by certain events,the timing of future illnesses.

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Definitions:

Tax Treatment

The specific methodology applied to determine the amount of taxes owed by an individual or business.

Limited Liability

A legal structure where a company's owners are not personally liable for the company's debts or liabilities.

Partnership

A sanctioned form of business collaboration among two or more persons who equally participate in managing the business and dividing its profits.

Proprietorship

A type of business entity owned and run by one individual where there is no legal distinction between the owner and the business.