If the government wanted to give people a negative direct incentive not to save money,what would be the appropriate policy?
A) providing individuals a subsidy to save their money
B) providing funding for an advertising campaign encouraging people to spend more money
C) informing individuals that saving money causes people not to spend money,which will cause them to lose their jobs
D) imposing a tax on individuals for saving their money
E) informing consumers about all that they could buy with their money with the hope that they spend more

Question

Quizplus · Accepted Answer

Imposing a tax on individuals for saving their money would provide a negative direct incentive not to save. This is because individuals would have to pay a penalty or tax for keeping their money instead of spending it, discouraging them from saving.

If the Government Wanted to Give People a Negative Direct