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.

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Definitions:

Positively Oriented

Having an optimistic outlook or approach towards life and its challenges.

Psychological Capacities

The mental abilities and processes that contribute to an individual's cognitive functioning and emotional well-being.

Positively Oriented

Describes an attitude or approach that focuses on positive outcomes, optimism, and the constructive aspects of situations.

Performance Improvement

Efforts and initiatives aimed at enhancing an individual's or organization's ability to achieve desired results more efficiently.