Which of the following sets of government policies is the most growth oriented ?
Correct answer: A. Lower taxes on the returns to saving, provide investment tax credits and lower the deficit
- 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
Explanation
Lower taxes on saving increase the incentive to save, investment tax credits encourage capital formation, and a lower deficit raises national saving. Together these policies support long-run economic growth.
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