Investment can be increased both by reducing taxes on private saving and by reducing the government budget deficit.

Investment can be increased both by reducing taxes on private saving and by reducing the government budget decit. True or False: It is possible to implement both of these policies at the same time because reducing taxes on private spending has the effect of decreasing the government budget decit. 0 True 0 False What would you need to know in order to judge which of these two policies would be a more effective way' to raise investment? Check all that apply. CI The responsiveness of private saving to increases in investment CI The response of private saving to changes in the government budget decit CI The elasticity of private saving with respect to the after-tax real interest rate