This topic contains a solution. Click here to go to the answer

Author Question: A government policy that makes investments prior to retirement tax exempt until retirement increases ... (Read 127 times)

natalie2426

  • Hero Member
  • *****
  • Posts: 524
A government policy that makes investments prior to retirement tax exempt until retirement increases the amount saved at any given interest rate.
 
  What will be an ideal response?

Question 2

Government debt increases the interest rate and private investment.
 
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Zack0mack0101@yahoo.com

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

True. Allowing investors to earn interest on the amount owed in taxes will shift out the supply curve of funds.

Answer to Question 2

False. The interest rate does increase; however, this causes the level of private investment to decrease.




natalie2426

  • Member
  • Posts: 524
Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it


amcvicar

  • Member
  • Posts: 341
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

For a complete list of videos, visit our video library