U.S.public Policy Discourages Saving Because

question 11

Multiple Choice

U.S.public policy discourages saving because

• A)other things the same,taxes increase the return from savings.
• B)means tested programs such as Medicaid provide lower benefits to those who did not save.
• C)none of parents' bequest to their children is taxed.
• D)some forms of capital income are taxed twice.

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Definitions:

Net Assets

The difference between an entity's total assets and total liabilities, representing the owners' equity in a company.

Year-end Adjustment

Adjustments made to financial statements at the close of a fiscal year to account for all financial activities and ensure accuracy in reporting.

Market Value

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the open market.

Common Stock

Shares of ownership in a corporation that entitle the shareholder to vote on corporate matters and receive dividends, subject to the company's profitability.