Which of the Following Is Not an Argument by Those

question 33

Multiple Choice

Which of the following is not an argument by those who oppose tax-law changes to encourage saving?

• A)Saving is not very responsive to changes in the tax rate.
• B)Saving is not an important determinant of a nation's ability to produce output.
• C)Reducing the budget deficit instead of changing the tax laws could raise saving.
• D)Changes in the tax laws to induce saving would distribute the tax burden less fairly.

Understand and apply the concept of the time value of money to evaluate financial decisions.

Differentiate between loans that are amortized and others.

Calculate the present value of immediate and deferred cash flows to compare financial options.

Conceptualize how payment frequency and timing affect the value of annuities and loans.

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Definitions:

Hastened

Accelerated or sped up the process of something occurring.

Bereavement

Acknowledgment of the objective fact that one has experienced a death.

Resuscitated

The act of reviving someone from unconsciousness or apparent death, often involving medical intervention such as CPR.

Physicians

Medical professionals who diagnose, treat, and help prevent diseases, injuries, and other physical and mental impairments in humans.