If a Reduction in Taxes on Savings Reduced the Amount

question 36

Multiple Choice

If a reduction in taxes on savings reduced the amount of private saving,then the

• A)income effect equaled the substitution effect.
• B)income effect outweighed the substitution effect.
• C)the substitution effect outweighed the income effect.
• D)None of the above.

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Definitions:

Specific Trait

A distinct characteristic or quality that can be attributed to an individual organism, often used in genetics and psychology.

Genetic Mutations

Changes or alterations in the DNA sequence of an organism that can lead to variations in physical appearance, function, or health.

Environmental Pollutants

Substances introduced into the environment that can cause harm or discomfort to organisms, including humans.

Sickle-cell Gene

A genetic variant that affects the shape of red blood cells, causing them to assume a sickle shape, which can lead to various health complications.