Which of the Following Might Explain a Decrease in National

question 12

Multiple Choice

Which of the following might explain a decrease in national saving when the tax rate on savings is reduced?

• A)its income effect on saving and its effect on the government budget
• B)its income effect on saving but not its effect on the government budget
• C)its effect on the government budget but not its income effect on saving
• D)neither its income effect on saving nor its effect on the government budget

---

Definitions:

Moderate

Not extreme or excessive; average in amount, intensity, quality, or degree.

Severe

Describing something extremely intense or serious in nature, often indicating grave consequences or conditions.

Gifted and Talented Program

An educational initiative designed to address the needs of students who exhibit high capabilities in academics, creativity or leadership.