Question

Policies to encourage higher personal saving rates include ________. raising taxes on pension plans lowering sales...

Policies to encourage higher personal saving rates include ________.

raising taxes on pension plans

lowering sales taxes

raising income taxes

all of the above

none of the above
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Answer #1

The U.S. personal saving rate has declined dramatically over the past several decades and is currently very low by historical standards. Increasing personal saving in the United States is a desirable policy goal. But, over the longer run, higher personal saving would lead to stronger economic growth. Hence, higher personal saving in the United States should increase investment in this country, which, in turn, should raise our capital stock and our productive capacity.

1. Policies to encourage higher personal saving rates include raising income taxes

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