Which of the Following Is Not an Argument Made by Those

question 354

Multiple Choice

Which of the following is not an argument made by those who oppose reforming the tax laws to encourage saving?

• A)A public budget surplus can raise national saving.
• B)The substitution effect of a higher return to saving may be about equal to the income effect of a higher return to saving.
• C)Low-income households save a larger fraction of their income than high-income households.
• D)Tax cuts might cause a budget deficit.

---

Definitions:

Trabeculae

The network of fine, bony spicules within the structure of certain bones, such as the spongy part of bone, that adds structural support while minimizing weight.

Medullary Cavity

Large, marrow-filled cavity in the diaphysis of a long bone.

Endosteum

A thin vascular membrane lining the inner surface of the bony tissue that forms the medullary cavity of long bones.

Osteoblasts

Bone-forming cells involved in the synthesis and mineralization of bone during both initial bone formation and later bone remodeling.