Interest Earnings from Accumulated Savings Are Subject to Personal Income

question 17

Multiple Choice

Interest earnings from accumulated savings are subject to personal income tax in Canada.As a result,

• A)total national saving is higher than it otherwise would be.
• B)there will be more capital accumulated for the economy.
• C)the interest paid on savings accounts increases.
• D)individuals have a reduced incentive to save.
• E)taxes applied to this income are regressive.

---

Definitions:

Pique Technique

A persuasion strategy that aims to capture people's interest by making a unique or unusual request.

Stockpiled Resources

Refers to accumulated materials or goods kept on hand for future use, often in preparation for shortages or emergencies.

Reverse Conditioning

A behavior modification technique where the conditioning process is applied in reverse, to eliminate or alter an unwanted behavior or reaction.

Systematic Desensitization

A behavioral therapy technique aimed at reducing anxiety or fear through gradual exposure to the feared object or situation.