Assume that the substitution effect is large relative to the income effect. If a tax reform is designed to increase saving, what does it do to the interest rate and spending on capital goods? a.

It increases the interest rate and decreases spending on capital goods.

b.

It increases the interest rate and increases spending on capital goods.

c.

It decreases the interest rate and increases spending on capital goods.

d.

It decreases the interest rate and decreases spending on capital goods.

a.

It increases the interest rate and decreases spending on capital goods.

Explanation:

Tax reform is a process through which most government controls the spending on capital goods and encourage local goods purchases. This is accomplished through increase on the taxes on those goods in such a way that, it becomes highly discouraging to spend such amount on it thereby encouraging savings.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

the correct answer for apex is “ doubling a recipe and figuring out how many cups of paint to use are both examples of using math skills”.