Which of the Following Would Increase Household Saving and Thus

question 88

Multiple Choice

Which of the following would increase household saving and thus equilibrium investment spending?

• A) A reduction in the investment tax credit.
• B) An increase in the corporate profits tax.
• C) A decrease in the capital gains tax.
• D) An increase in the investment tax credit.
• E) An increase in government regulation.

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Definitions:

Member

An individual who has been admitted to membership in a particular group, organization, or category.

LLC

Limited Liability Company, a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Damages

A monetary compensation awarded to a person as restitution for loss or injury caused by the unlawful acts or negligence of another party.

Dissociating Member

An individual who is leaving or has left a partnership or limited liability company (LLC), and hence is severing ties with the entity.