Which of the Following Is Not an Argument Against Reforming

question 17

Multiple Choice

Which of the following is not an argument against 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:

Error Terms

Components of a statistical model that represent the difference between observed and predicted values.

Time

The ongoing and continuous sequence of events that occur in succession, from the past through the present to the future.

Residuals

The variance between actual observed data points and the values forecasted by a computational model.

Telemarketing Sales

The direct marketing of goods or services to potential customers over the telephone or through subsequent calls.