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Suppose You Have Maxed Out Your Allowable Contributions to Your

question 9

Multiple Choice

Suppose you have maxed out your allowable contributions to your tax-sheltered retirement plans and you still want to shelter income. The best choice of investment for you to minimize the tax bill is to invest in ________.


Definitions:

Convex Preferences

In consumer theory, these are preferences where blends or combinations of two goods are preferred to extreme allocations, reflecting a desire for balance.

Indifference Curve

A graph representing different bundles of goods between which a consumer is indifferent, showing the combination of two goods that give the same level of satisfaction to the consumer.

Mosquito Bites

These are the itchy and often red swellings caused on the skin due to the reaction to the saliva of mosquitoes when they bite to feed on blood.

Lake Cabin

A dwelling located by a lake, often used as a vacation or weekend getaway.

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