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

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Definitions:

Public Opinion

The collective attitudes, beliefs, and values of the general public or specific groups about issues, policies, or elected officials, often shaped by political socialization.

Public Policy

Government policies designed to address public issues and create laws and actions to achieve desired outcomes for society.

Political Trust

Refers to the confidence and faith that citizens have in their political system and its institutions.

United States

A country in North America consisting of 50 states and a federal district, known for its democratic government and multicultural population.