An Example of an Incentive Designed to Promote Savings Would

question 5

Multiple Choice

An example of an incentive designed to promote savings would be

• A)a tax provision that reduces the effective interest rate garnered by savings.
• B)an increase in the sales tax.
• C)an increase in the capital gains tax rate.
• D)a decrease in the exclusion from taxable income of the first $100 of dividends.

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Definitions:

Social Darwinism

An ideology that applies the concept of "survival of the fittest" to human societies, justifying inequalities in wealth and social status as natural.

Liberty of Contract

A legal principle asserting the freedom of individuals to form contracts without government interference, emphasizing economic freedom and limiting state regulation.

Ghost Dance

A spiritual and political movement among Native Americans whose followersperformed a ceremonial “ghost dance” intended to connect the living with the dead and make theIndians bulletproof in battles intended to restore their homelands.

Historical Significance

Refers to the importance of an event, place, or person in history due to its impact, consequences, or contributions to broader historical processes.