If savings do not respond to changes in the interest rate, does it mean that there is

Question:

If savings do not respond to changes in the interest rate, does it mean that there is no deadweight loss associated with the taxation of interest?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics Of The Public Sector

ISBN: 9780393925227

4th Edition

Authors: Joseph E. Stiglitz, Jay K. Rosengard

See More Books

Question Posted: Oct 19, 2023 02:41 AM

See More Questions

Through the income tax code, governments typically tax most interest incomebut, through a variety of retirement programs, they often subsidize at least some types of interest income. A. Suppose all...
Suppose that consumption takes place this period and next period, and consumption is always a normal good. Suppose further that income now is positive and income next period is zero. A: Explain why...
1. Hannah is applying for a life policy on her girlfriend Sarahs life. The policy is $500,000 and carries a large premium. Hannah is the main earner, so she is concerned about not being able to pay...
A 1220-N uniform beam is attached to a vertical wall at one end and is supported by a cable at the other end. A 1960-N crate hangs from the far end of the beam. Using the data shown in the drawing,...
How are reliability and maintainability related? Give an example for a product or service you have experienced.
Singh Distributing Company uses the perpetual inventory system and engaged in the following transactions during May of the current year: May 3 Purchased office supplies for cash, $22,000. 7 Purchased...
Discuss why employment disclaimers are important to the employer.
1. What recent StuffDOT actions have added to its user-friendliness? 2. (a) Who are StuffDOTs major competitors and (b) what point(s) of difference should StuffDOT use to distinguish itself from...
The following alphabetical list of selected accounts taken from the general ledger of Mayne Corporation identify the accounts that are part of shareholders' equity as of December 3 1 , Year 2 :...
What is the deadweight loss from the mineral tax in Chapter 18, problem 1? What is the relationship between deadweight loss and supply curves? Relate this to the discussion of lump-sum taxes. Data...
In what ways may the actual incidence of a government expenditure program differ from the legislated intent? Why might the effects be different in the short run than in the long run? Illustrate with...
Use the data set in FISH.RAW, which comes from Graddy (1995), to do this exercise. The data set is also used in Computer Exercise C12.9. Now, we will use it to estimate a demand function for fish....
Draft a Certificate of Formation of Limited Partnership for filing with the Texas Secretary of State (or if you are not in Texas, a Certificate of Limited Partnership from your state) based on the...
"In the context of molecular biology research, what are the most sophisticated methodologies and technologies available for inducing targeted mutations in proteins, and how do these approaches enable...
Create a 10 to 15 slide PowerPoint presentation, in which you analyze the impact of civil disabilities, voting rights and ability to enter certain professions and occupations, and its impact on...
What symptoms could you observe in a person suffering from pellagra?
how many of you remember the Fidget Spinner? It seemed like they were everywhere, from gas stations to Wal-Mart. They were also among the top 100 selling products on Amazon at one point. Flash...
The administrator of a school board in a large county was analyzing the average mathematics test scores in the schools under her control. She noticed that there were dramatic differences in scores...
The Alert Company is a closely held investment-services group that has been very successful over the past five years, consistently providing most members of the top management group with 50% bonuses....
Discuss the relation of advertising objectives to marketing strategy planning and the kinds of advertising actually needed. Illustrate.
List several media that might be effective for reaching consumers in a developing nation with low per capita income and a high level of illiteracy. Briefly discuss the limitations and advantages of...
Give three examples where advertising to intermediaries might be necessary. What are the objective(s) of such advertising?
At Oriole Company, employees are entitled to one day's vacation for each month worked. In January, 65 employees worked the full month. Record the vacation pay liability for January, assuming the...
Whispering Corporation began operations in 2020 and reported pretax financial income of $230,000 for the year. Whispering's tax depreciation exceeded its book depreciation by $47,000. Whispering's...
In alphabetical order below are balance sheet items for Sandhill Company at December 31, 2025. Accounts payable $69,500 Accounts receivable 76,000 Cash 25,000 Common stock 16,500 Retained earnings...

If savings do not respond to changes in the interest rate, does it mean that there is

Question:

Step by Step Answer:

The relationship between changes in interest rates and the response of savings is a key factor in assessing the deadweight loss associated with the ta...View the full answer

Economics Of The Public Sector

Students also viewed these Business questions