Which of the Following Is Not Correct

question 173

Multiple Choice

Which of the following is not correct?

• A) American families save a larger fraction of their incomes than their counterparts in many other countries such as Germany and Japan.
• B) Saving is an important long-run determinant of a nation's standard of living.
• C) A change in tax laws that encouraged greater saving would lower interest rates.
• D) Taxes on interest income can substantially decrease the future value of current saving.

---

Definitions:

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time, also known as the just noticeable difference (JND).

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli, allowing individuals to adapt to their environment.

Top-Down Processing

A cognitive process that starts with the brain applying what it knows and expects to perceive and interpret new information.

The Fovea

A tiny pit located in the macula of the retina that provides the clearest vision of all; it's responsible for sharp central vision.