When the government encourages you to buy a home by allowing you to take an interest deduction, it is using which policy instrument?
A) regulating
B) educating
C) taxing and spending
D) charging fees

Question

Quizplus · Accepted Answer

The government is using tax policy by allowing individuals to deduct mortgage interest from their taxable income. This incentivizes individuals to purchase homes, which is a form of government spending through the tax code.

When the Government Encourages You to Buy a Home by Allowing