Which of the following is not an argument made by those who oppose reforming the tax laws to encourage saving?
A)A public budget surplus can raise national saving.
B)The substitution effect of a higher return to saving may be about equal to the income effect of a higher return to saving.
C)Low-income households save a larger fraction of their income than high-income households.
D)Tax cuts might cause a budget deficit.

Question

Quizplus · Accepted Answer

Low-income households typically save a smaller fraction of their income compared to high-income households, so this is not an argument used by those opposing tax law reforms to encourage saving.

Which of the Following Is Not an Argument Made by Those