Which of the following would likely increase private saving?
A)Both expansion of IRA type accounts and a consumption tax.
B)Expansion of IRA type accounts,but not a consumption tax.
C)A consumption tax,but not expansion of IRA type accounts.
D)Neither expansion of IRA type accounts nor a consumption tax.

Question

Quizplus · Accepted Answer

Expansion of IRA type accounts would provide individuals with a tax incentive to save more. Additionally, a consumption tax would discourage spending, thus encouraging individuals to save more of their income. Both policies would work together to increase private saving.

Which of the Following Would Likely Increase Private Saving