Which of the Following Might Explain a Decrease in National

question 42

Multiple Choice

Which of the following might explain a decrease in national saving when the tax rate on savings is reduced?

• A)its substitution effect on saving and its effect on the government budget
• B)its substitution effect on saving but not its effect on the government budget
• C)its effect on the government budget but not its substitution effect on saving
• D)neither its substitution effect on saving nor its effect on the government budget

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Definitions:

HOMO

Highest Occupied Molecular Orbital, the highest energy molecular orbital that contains electrons in a given molecule.

1,3,5-Hexatriene

A linear hydrocarbon with alternating single and double bonds, specifically found in conjugated systems.

Dienophiles

Reactants used in Diels-Alder reactions that have electron-poor double or triple bonds and react with dienes to form cyclic compounds.

(E,E)-Isomer

Refers to a type of geometric isomerism where substituents are positioned on opposite sides of a double bond or rings in a molecule.