Taxes on Interest Earned from Savings Are Less Inefficient

Multiple Choice

Taxes on interest earned from savings are less inefficient

A) the less savings behavior responds to increases in the tax rate.
B) the more savings behavior responds to increases in the interest rate.
C) the less willing individuals are to substitute consumption today for consumption in the future.
D) Both (a) and (b)
E) Both (b) and c
F) Both (a) and (c)
G) None of the above
H) All of the above