Free Practice Question
CR · Critical Reasoning
655-705
Complete the Passage
.
Which of the following, if true, is the most logical completion of the argument below? The tax system of the Kingdom of Eldoria encourages borrowing by providing its taxpayers tax deductions for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Eldoria's tax system does not consistently favor borrowing over saving, for if it did, there would be no __________.
Which of the following, if true, is the most logical completion of the argument below? The tax system of the Kingdom of Eldoria encourages borrowing by providing its taxpayers tax deductions for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Eldoria's tax system does not consistently favor borrowing over saving, for if it did, there would be no __________.
Answer Choices
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tax deductions in Eldoria for those portions of a taxpayer's income, if any, that are set aside to increase that taxpayer's total savings
B
tax deductions in Eldoria for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans
C
tax deductions in Eldoria for interest that taxpayers are charged on the unpaid balance in credit card accounts
D
taxes due in Eldoria on the cash value of gifts received by taxpayers from banks trying to encourage people to open savings accounts
E
taxes due in Eldoria on the amount that a taxpayer has invested in interest-bearing savings accounts
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5026Feb 1, 2025
thanks!
Details
Difficulty
655-705
Type
CR