The Interest Rate Tax Wedge ________ the Quantity of Savings

question 15

Multiple Choice

The interest rate tax wedge ________ the quantity of savings and investment and ________ the growth rate of real GDP.

• A)decreases;slows
• B)increases;slows
• C)does not change;raises
• D)does not change;does not change
• E)decreases;raises

---

Definitions:

Radial Cleavage

A type of embryonic development in certain animals where cell divisions occur at right angles to one another, typical in deuterostomes.

Coelom

Body cavity of an animal; the method by which the coelom is formed (or lack of formation) is an identifying characteristic in animal classification.

Protostomes

A group of animals characterized by the blastopore (the first opening in the developing embryo) becoming the mouth, including groups like mollusks and annelids.

Deuterostomes

A group in the animal kingdom characterized by the development of the anus from the first opening in the embryo, with the mouth developing later.