A tax system that discourages savings hurts long-run growth prospects because:
A. the trade balance deteriorates.
B. investment spending decreases.
C. consumption spending remains constant.
D. the federal budget turns into surplus.
Answer:B
A tax system that discourages savings hurts long-run growth prospects because:
A. the trade balance deteriorates. B. investment spending decreases. C. consumption spending remains constant. D. the federal budget turns into surplus.