a.

because there is a clear consensus among economists about what a good monetary policy rule would be

b.

because rules would eliminate the political business cycle

c.

because rules respond to any random shocks in the economy

d.

because rules create time inconsistency

a.

because, other things the same, taxes increase the return from savings

b.

because means-tested programs such as Old Age Security provide greater benefits to those who saved

c.

because some forms of capital income are not taxed

d.

because capital gains are taxed heavily

a.

that individuals know better that the government how much to save

b.

that saving is not an important determinant of a nation's ability to produce output

c.

that rich people would bear the burden of such a tax system

d.

that such a tax system would increase inequality