Exam 23: Six Debates Over Macroeconomic Policy: Should the Tax Laws Be Reformed to Encourage Saving

Suppose tax laws were reformed to encourage saving by increasing the rate of return on savings.Which of the following would be true?

A decrease in the tax rate is more likely to increase the standard of living if the income effect of a change in the interest rate is

Eliminating means requirements for government benefits would

Opponents of tax reforms intended to raise saving argue that such reforms

A reduction in the tax rate on interest income

A year ago a country reduced the tax rate on all interest income from 40% to 10%.During the year private saving was $600 billion as compared to $500 billion the year before the tax reform.Taxes collected on interest income fell by $150 billion.Assuming no other changes in government revenues or spending which of the following is correct?

Which of the following reduce the incentive for households to save?

Which of the following are both correct?

Assuming that the substitution effect is large relative to the income effect,tax reform designed to increase saving

A consumption tax that replaces an income tax

U.S.public policy discourages saving because

Which of the following might explain a decrease in national saving when the tax rate on savings is reduced?

Which of the following raise the incentive for households to save?

Which of the following is correct?

Which of the following are taxed?

Suppose the tax rate on interest income from saving were reduced.

Which of the following two effects of a decrease in the tax rate on saving would raise savings?

A year ago a country reduced the tax rate on all interest income from 20% to 10%.During the year private saving was $500 billion as compared to $400 billion the year before the tax reform.Taxes on interest income fell by $10 billion.Assuming no other changes in income,or government revenues or spending,which of the following is correct?

A reduction in the tax rate on income from saving would

Means-tested government benefits base benefits on