Which of the Following Is Not an Argument by Those

question 33

Multiple Choice

Which of the following is not an argument by those who oppose tax-law changes to encourage saving?

• A)Saving is not very responsive to changes in the tax rate.
• B)Saving is not an important determinant of a nation's ability to produce output.
• C)Reducing the budget deficit instead of changing the tax laws could raise saving.
• D)Changes in the tax laws to induce saving would distribute the tax burden less fairly.

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Definitions:

Labour Cost

is the total expenditure incurred by employers to compensate their employees, including wages, benefits, and taxes.

Raw Materials

Basic materials used in the production process of manufacturing goods, usually transformed into finished products.

Fixed Costs

Expenses that do not change with changes in the volume of production or services provided.

Operating Cash Flow

An accounting measure representing the money generated from a company's daily business operations, indicating its ability to generate cash from sales.