Which of the Following Best Describes What Would Happen If

Multiple Choice

Which of the following best describes what would happen if all private retirement accounts were taxed?

A) Consumption expenditures would decline, driving up interest rates and resulting in investment expenditures declining.
B) Consumption expenditures would increase, driving up interest rates and resulting in investment expenditures declining.
C) Government expenditures would increase, causing consumption expenditures to decline, which would result in interest rates declining, which would cause investment expenditures to rise.
D) Consumption expenditures would decline, driving down interest rates and resulting in investment expenditures increasing.
E) Consumption expenditures would increase, causing government spending to increase, which would result in a decline in investment expenditures.