If You Save Less Because the Government Is Going to Tax

question 41

Multiple Choice

If you save less because the government is going to tax you and later provide you with a benefit, then this reduction in savings is referred to by economists as the

• A)slovenly effect.
• B)bequest effect.
• C)induced retirement effect.
• D)asset substitution effect.

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Definitions:

Monetary Amount

The numerical value or sum of money expressed in a currency.

Nearest Cent

Rounding an amount to the closest cent, where amounts under half a cent are rounded down and half a cent or over are rounded up.

Salesperson Drives

Activities or motivations that propel a salesperson to achieve sales targets or perform sales activities.

Pounds Pork

A measurement of pork weight in pounds, commonly used in the sale and distribution of this type of meat.