Question

If the government passes a tax break for its citizens, which of the following is correct?...

If the government passes a tax break for its citizens, which of the following is correct?

National savings will remain the same if the public saves the entire tax break

National savings will fall even if the public saves the entire tax break

National savings is not impacted by tax breaks, regardless of public behavior

None of the above are correct

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
  • Option a is the answer.
  • National savings will remain the same if the public saves the entire tax break .
  • National saving is the sum of public savings and private savings. Public savings are obtained mostly from taxes from the citizens. When there is a tax break, the income of people will increase and this will result in higher consumption and national income will reduce. Since it has been said that, public will save the entire tax break, then the national savings will remain the same.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Let's assume that a government approves legislation that encourages its citizens to save more (for example,...
Let's assume that a government approves legislation that encourages its citizens to save more (for example, by passing a consumption tax and eliminating the income tax). Which of the following statements is true? Keynesian economists do not support this change because Keynesian economists care about the long run and not the short run. None of the listed choices is correct. Keynesian economists support this change because additional savings helps to stimulate the economy in the short run. Classical economists do...
Scenario 1 The government is proposing switching from a progressive tax system, in which families pay...
Scenario 1 The government is proposing switching from a progressive tax system, in which families pay 15% of the first $40,000 earned, 30% of the next $40,000 earned, and 45% of any income over $80,000 to a tax system in which every family pays ¼ of its income regardless of how much they earn and all income redistribution is eliminated. That is, the tax revenue generated is used only for infrastructure, public administration, and national defense. 36. According to Scenario...
Suppose the new government passes a tax cut of Rs. 90. How does it change the...
Suppose the new government passes a tax cut of Rs. 90. How does it change the Investment and National savings in each of the following scenarios? 1- people keep all of the tax cut under their mattress. 2- people spend all of the tax cut on Marvel universe paraphernalia. 3- people use half the money to buy junk food and cars, and they keep the rest under their pillows. e. What happens to the economy when people spend some of...
which of following can be considered as a direct majo cost of unemployment government tax revenues...
which of following can be considered as a direct majo cost of unemployment government tax revenues rise by 30% inequality in income refuce by 20% government expenditure fall by 40% government tax revenues fall by 30%
Give me the answer of the following MCQs 1. Which of the following is an example...
Give me the answer of the following MCQs 1. Which of the following is an example of a fixed cost? Select one: A. Depreciation of manufacturing equipment B. Utility expense for electricity usage C. Hourly Wages D. None of the above 2. Which method of cost data analysis involves approximating a linear cost relationship based on the extremes of production volume? Select one: A. Scattergraph method B. High-low method C. All of the above D. None of the above 3....
Which of the following companies would be most likely to use the break-even point expressed in...
Which of the following companies would be most likely to use the break-even point expressed in units? An accounting firm A law firm An electrician An automobile dealer None of the answer choices is correct.
6 Which of the following statements is a true statement relating to Tax Policy Analysis) a....
6 Which of the following statements is a true statement relating to Tax Policy Analysis) a. Administration and ease of compliance are not taken into account in the development of a tax structure. b. The only way to legally avoid a tax is to change your behavior. c. Statutory and Economic Incidence are essentially the same thing. d. All of the above statements are true. 7 Which of the following is a true statement regarding user fees? a. They should...
Which of the following is likely to happen if the government raises tax rates? Select one:...
Which of the following is likely to happen if the government raises tax rates? Select one: a. Unemployment will fall. b. Consumption will decrease. c. Price level will rise. d. Investment will increase.
Which of the following statements are correct for the effect of an import tariff on a...
Which of the following statements are correct for the effect of an import tariff on a small nation? Select one or more: a. In general, an import tariff reduces the national welfare of a small importing nation because the gain in producer surplus is smaller than the loss in consumer surplus. b. The import tariff raises government revenue. c. In general, an import tariff increases the national welfare of the small importing nation because the tariff raises the government revenue....
[16] Over the last 25 years the dollar amount of government expenditures has been: A) increasing....
[16] Over the last 25 years the dollar amount of government expenditures has been: A) increasing. B) decreasing. C) relatively constant. D) fluctuating widely up and down. [17] Which of the following is a public good? A) A lighthouse. B) A private hospital. C) A commercial airliner. D) A corporation's charitable redevelopment of a city neighborhood. [18] A good or service that is provided for all of society, and no one is excluded from its use, is called: A) a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT