Which of the following sets of government policies is the most growth oriented?
A) Lower taxes on the returns to saving, provide investment tax credits, and lower the deficit.
B) Increase tax on the returns to saving, provide investment tax credits, and increase the deficit.
C) Increase tax on the returns to saving, provide investment tax credits, and lower the deficit
D) Lower taxes on the returns to saving, provide investment tax credits, and increase the deficit.

Question

Quizplus · Accepted Answer

Lowering taxes on the returns to saving creates more incentives for people to save and invest, which can increase economic growth. Similarly, investment tax credits can incentivize businesses to invest in their operations, which can also lead to growth. Lowering the deficit can help keep interest rates low, which can encourage borrowing and spending, also promoting growth. The other options either increase taxes on saving, which can discourage saving and decrease growth, or increase the deficit, which can lead to higher interest rates and inflation, potentially harming the economy in the long run.

Which of the Following Sets of Government Policies Is the Most