Which of the following is a way the government can stimulate saving?
A) Decrease interest rates
B) Increase taxes
C) Offering tax incentives for retirement accounts
D) There is nothing the government can do to stimulate saving.

Question

Quizplus · Accepted Answer

By offering tax incentives for retirement accounts, the government can encourage people to save more for their future. This reduces the amount of taxable income in the present and increases the amount of retirement savings, which will also benefit the economy in the long term. Decreasing interest rates may encourage borrowing and spending, but it does not necessarily stimulate saving. Increasing taxes may discourage spending and encourage saving, but it is not a direct stimulation of saving behavior. Option D is incorrect as there are multiple policies and measures the government can implement to stimulate saving.

Which of the Following Is a Way the Government Can