How can the U.S.federal government induce increases in the national saving rate?
A)implementing a value added tax
B)lowering the capital gains tax
C)reducing budget deficits
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

All the options listed can potentially increase the national saving rate. Implementing a value-added tax can reduce consumption and increase savings. Lowering the capital gains tax can encourage investment and savings. Reducing budget deficits can increase national savings by reducing the amount the government borrows, leaving more savings available for investment.

How Can the U