Which of the following is not an argument by those who oppose tax-law changes to encourage saving?
A)Saving is not very responsive to changes in the tax rate.
B)Saving is not an important determinant of a nation's ability to produce output.
C)Reducing the budget deficit instead of changing the tax laws could raise saving.
D)Changes in the tax laws to induce saving would distribute the tax burden less fairly.

Question

Quizplus · Accepted Answer

Opposition to tax-law changes to encourage saving typically argues that saving is not very responsive to changes in the tax rate (A), reducing the budget deficit instead could raise saving (C), and changes in the tax laws to induce saving would distribute the tax burden less fairly (D). However, they don't typically argue that saving is not an important determinant of a nation's ability to produce output (B), as this would contradict mainstream economic theory.

Which of the Following Is Not an Argument by Those