Of the Following,the Most Likely Effect of an Increase in Income

question 27

Multiple Choice

Of the following,the most likely effect of an increase in income tax rates would be to

• A)decrease the savings rate.
• B)decrease the supply of loanable funds.
• C)increase interest rates.
• D)all of these choices are correct.

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Definitions:

Severe

Used to describe a condition, situation, or event that is intensely or extremely bad or serious.

Nicotine Dependence

A condition of addiction to the nicotine contained in tobacco products, leading to compulsive use.

Chewing Tobacco

A type of smokeless tobacco product consumed by placing a portion of the tobacco between the cheek and gum.

Withdrawal

The process of reducing or eliminating the intake of a psychoactive substance to which one has become dependent or the symptoms experienced as a result of this process.