Accordingtothetextbook,whichofthefollowingstatementsis(are)correct? (x) An advantage of a consumption tax over the present income tax system is that a consumption tax discourages consumption and encourages saving. (y) If interest income from savings is taxed, a disincentive to save is created and less saving occurs. (z) An advantage of a consumption tax over the present tax system is that a consumption tax places more of the tax burden on the wealthy. (x), (y) and (z) (x) and (y) only (x) and (z) only (y) and (z) only (x) only
Accordingtothetextbook,whichofthefollowingstatementsis(are)correct? (x) An advantage of a consumption tax over the present income tax system is that a consumption tax discourages consumption and encourages saving. (y) If interest income from savings is taxed, a disincentive to save is created and less saving occurs. (z) An advantage of a consumption tax over the present tax system is that a consumption tax places more of the tax burden on the wealthy. (x), (y) and (z) (x) and (y) only (x) and (z) only (y) and (z) only (x) only
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Savings,Investment And The Financial System
Section: Chapter Questions
Problem 2QCMC
Related questions
Question
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Accordingtothetextbook,whichofthefollowingstatementsis(are)correct?
-
(x) An advantage of a consumption tax over the present income tax system is that a consumption tax
discourages consumption and encourages saving.
-
(y) If interest income from savings is taxed, a disincentive to save is created and less saving occurs.
-
(z) An advantage of a consumption tax over the present tax system is that a consumption tax places more of
the tax burden on the wealthy.
-
(x), (y) and (z)
-
(x) and (y) only
-
(x) and (z) only
-
(y) and (z) only
-
(x) only
-
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