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Author Question: A government policy that makes investments prior to retirement tax exempt until retirement increases ... (Read 152 times)

natalie2426

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on: Jul 1, 2018
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


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Zack0mack0101@yahoo.com

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Reply #1 on: Jul 1, 2018
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

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Reply 2 on: Jul 1, 2018
Gracias!

parshano

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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