Private savings and thus investment could be increased by which of the following government policies,ceteris paribus?

Question

Quizplus · Accepted Answer

All of the above policies would provide incentives for individuals and corporations to save more, thereby increasing the pool of private savings available for investment. Eliminating the corporate income tax and allowing corporations to use "replacement cost accounting" would reduce the tax burden on corporations and increase their after-tax profits, which could be saved or invested. Exempting interest earnings from income taxation would reduce the tax burden on savers and provide incentives for them to save more. Therefore, all three policies would help to increase private savings and investment.

Private Savings and Thus Investment Could Be Increased by Which