Which of the Following Is Not an Argument Made by Those

question 354

Multiple Choice

Which of the following is not an argument made by those who oppose reforming the tax laws to encourage saving?

• A)A public budget surplus can raise national saving.
• B)The substitution effect of a higher return to saving may be about equal to the income effect of a higher return to saving.
• C)Low-income households save a larger fraction of their income than high-income households.
• D)Tax cuts might cause a budget deficit.

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Definitions:

Illusory Promises

Promises that are vague or lack commitment, rendering them unenforceable in a contract because they fail to bind the promisor.

Monetary Value

The value of an object, service, or asset expressed in terms of money.

School Loans

Financial loans provided to students to help cover the cost of post-secondary education, including tuition, room and board, and other related expenses.

Additional Work

Tasks or services that are added to the original scope of a contract or agreement, often requiring a modification to terms and additional payment.