Why Should the Tax Laws to Encourage Saving Remain as They

question 67

Multiple Choice

Why should the tax laws to encourage saving remain as they are?

• A) because a decrease in taxes would primarily benefit the wealthy
• B) because tax rates on savings are relatively low
• C) because people would probably save more than if taxes were lowered
• D) because tax cuts might cause a budget deficit

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Definitions:

Aspirin

A medication used to reduce pain, fever, inflammation, and, in low doses, to prevent blood clots.

Startle

A quick, automatic response to a sudden unexpected stimulus, often characterized by jerking bodily motions.

Drainage

The removal of fluids from a body cavity, wound, or other source, often for therapeutic reasons.

Ear Infections

Infections that occur in the ear, often in the middle ear, leading to pain, fever, and sometimes hearing difficulty.