To improve the long-term savings rate of the citizens of Levaska, the country's legislature decided to implement a plan that allows investors to save up to $1,000 per year in special accounts without paying taxes on the interest earned unless withdrawals are made before the investor reaches age sixty-five. Withdrawals from these accounts prior to age sixty-five would result in the investor's having to pay taxes on all the accumulated interest at the time of withdrawal.
Which of the following, if true, most strongly supports the prediction that the legislature's plan will have its intended effect?
To improve the long-term savings rate of the citizens of Levaska, the country's legislature decided to implement a plan that allows investors to save up to $1,000 per year in special accounts without paying taxes on the interest earned unless withdrawals are made before the investor reaches age sixty-five.Withdrawals from these accounts prior to age sixty-five would result in the investor's having to pay taxes on all the accumulated interest at the time of withdrawal.
Which of the following, if true, most strongly supports the prediction that the legislature's plan will have its intended effect?
A. The money saved in the tax-free savings accounts will be deposited primarily in those banks and financial institutions that supported the legislation instituting the plan.
B. The majority of people choosing to take advantage of the tax-free savings accounts will withdraw their money prior to age sixty-five.
C. A significant number of the citizens of Levaska will invest in the tax-free savings accounts well before they reach the age of sixty-five.
D. During the ten years prior to implementation of the plan, Levaskans deposited an increasingly smaller percentage of their annual income in long-term savings accounts.
E. People who are not citizens of Levaska are not eligible to invest in the tax-free savings accounts, even if their income is taxable in Levaska.
A使得金融机构增加对此政策的支持,因此会增加此政策通过的可能性,但不一定能增加saving rate,因为老百姓不一定买账。 B明显,是削弱。 D在这之前存钱少,但并不一定在这之后存钱增多,可能维持原状。 E与题干无关,题干是说增加savings rate of the citizens of Levaska。 C如果大部分人都在65岁之后再存长期,这个政策将不具有激励作用。而C说significant number of citizens在65岁之前存钱,则政策具有更强的激励存款的作用。 多多指教。
My viewpoint is that the L governors intended to collect money at a minimum cost so that they potentially allowed citizens withdraw the money before 65 in that it can not only save policy cost, but increase saving rate meanwhile. So i choose B.