Which of the Following Policies Would Be Expected to Increase

question 113

Multiple Choice

Which of the following policies would be expected to increase private saving?

• A)Increasing the income tax.
• B)Reducing the tax rate on capital gains and dividends.
• C)Providing more generous Social Security retirement benefits.
• D)Increasing job security.

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Definitions:

Biologically Adaptive

Traits or behaviors that enhance an individual's ability to survive and reproduce within their environment.

Group Attribution Error

The tendency to erroneously attribute the behavior or attitudes of individual members to the characteristics of the group as a whole.

Extremity Bias

A cognitive bias where individuals tend to remember and give disproportionate weight to the most extreme examples or experiences.

Law of Small Numbers

A cognitive bias that leads people to draw broad conclusions from small data sets or limited information.