A Higher Return on Saving ______ the Amount a Household

question 111

Short Answer

A higher return on saving ______ the amount a household needs to save to achieve any target level of future consumption. This effect on saving is called the _______ effect. If the income effect is large enough, then a reduction in taxes on saving might ______ tax revenues.

---

Definitions:

Rules And Regulations

Established guidelines or principles governing conduct, actions, and procedures within a specific area or organization.

Social Support System

A network of friends, family, and peers that provide emotional, informational, and instrumental assistance.

Camaraderie

A sense of friendship, fellowship, or loyalty shared among a group or people.

Occupation

Occupation refers to a person's regular work or profession, which is a significant aspect of their identity and livelihood.