One Policy That Would Increase the Saving Rate Would Be

question 328

Multiple Choice

One policy that would increase the saving rate would be

• A) raising taxes on the returns to saving.
• B) raising taxes on the returns to investment.
• C) taxing consumption.
• D) raising taxes on saving.

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Definitions:

Financial Institutions

Entities such as banks, credit unions, and insurance companies that provide financial services including loans, deposits, investments, and currency exchange.

Monopolization

The process or state in which a single entity gains exclusive control over a commodity, market, or service.

Economic Goals

The objectives that guide the economic decisions and policies of individuals, businesses, and governments, typically including growth, stability, and equity.

Neoliberalism

A political and economic philosophy advocating for free-market capitalism, deregulation, and a reduction in government spending.