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:

Eisenhower

Dwight D. Eisenhower, the 34th President of the United States, who served from 1953 to 1961.

Civil Rights Act of 1964

A landmark piece of civil rights legislation in the United States that outlawed discrimination based on race, color, religion, sex, or national origin.

U.S. Office of Education

A former agency of the federal government responsible for administering and coordinating federal assistance to education, now part of the Department of Education.

Discriminatory Practices

Actions or policies that treat people unequally or unfairly based on characteristics such as race, gender, age, or sexual orientation.