If all saving and investment could be placed into a tax-deferred saving account, then the federal income tax would approximate a consumption tax

Comment on the following statement: "Since product differentiation allows price competitors to establish some market power, it would be more efficient to not permit product differentiation."

What will be an ideal response?

If disposable income decreases from $1,800 to $1,500 and MPC = 0.75, then saving will

A. decrease by $225. B. decrease by $75. C. increase by $75. D. increase by $225.