Businesses are suffereing because of a lack of money available for development loans. To help businesses, the government plans to modify the income-tax structure in order to induce individual taxpayers to put a large portion of their incomes into retirement savings accounts, because as more money is deposited in such accounts, more money becomes available to borrowers.
Which of the following, if true, raises the most serious dobt regarding the effectiveness of the govt.'s plan to increase the amount of money available for development loans for business?
1) when levels of personal savings increase, consuner borrowings always increases correspondingly.
2) Bankers generally wil not continue to lend money to businesses whose prospected earnings are insufficient to meet their loan repayment schedules
Isn't option 1 strengthening the argument here? Isn't option 2 here is more close to be an answer when compared to 1?
Which of the following, if true, raises the most serious dobt regarding the effectiveness of the govt.'s plan to increase the amount of money available for development loans for business?
1) when levels of personal savings increase, consuner borrowings always increases correspondingly.
2) Bankers generally wil not continue to lend money to businesses whose prospected earnings are insufficient to meet their loan repayment schedules
Isn't option 1 strengthening the argument here? Isn't option 2 here is more close to be an answer when compared to 1?
