A government policy that would reduce the saving rate is
A) eliminating the social security system.
B) giving tax breaks to increase the real return that savers receive.
C) increasing the government budget surplus by cutting government spending.
D) switching the tax system to tax consumption instead of income.
C
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The turnpikes built in the early 1800s were
(a) intercity toll roads. (b) highly profitable enterprises. (c) financed entirely by private enterprise. (d) regulated by the federal government.
Assume that the current market price is below the market clearing level. We would expect:
A) a surplus to accumulate. B) downward pressure on the current market price. C) upward pressure on the current market price. D) lower production during the next time period.
Under democratic representative government, spending on a government program will likely be larger than the amount consistent with economic efficiency when
a. tax costs are levied in direct proportion with the benefits received. b. both the costs and benefits are widespread among the voters. c. benefits of the program are highly concentrated, while the costs are widely dispersed among voters. d. costs of the program are highly concentrated, while the benefits are widely dispersed among voters.
Burger Bonanza, a major national burger chain, recently decided to spend $4 million on an advertising campaign featuring a world famous actor to promote its new Bomber Burger. What can consumers conclude from Burger Bonanza's willingness to spend $4 million on an advertising campaign?