Identify Three Government Policies That Discourage Saving

question 132

Essay

Identify three government policies that discourage saving.

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Definitions:

Excess Earnings

Profits that exceed the normal expected return on investment or capital for a business operation or asset.

Fair Value

The estimated price at which an asset or liability could be bought or sold in an orderly transaction between market participants.

Goodwill

A non-physical asset that comes into existence when a company is purchased at a price higher than the fair market value of its net identifiable assets.

Book Value

The net value of a company's assets found on its balance sheet, minus liabilities, often compared to market value for analysis.