When a Democrat Is Elected as President, Business Leaders Expect

question 90

Multiple Choice

When a Democrat is elected as president, business leaders expect that the corporate profits tax will be increased. Most likely, this will cause business firms, ceteris paribus, to

• A) plan to increase investment in the future to compensate for the higher tax rate.
• B) decrease investment because they would expect lower benefits from investment.
• C) not change their investment plans because higher corporate profit taxes will not change the demand for their product.
• D) increase investment because the higher corporate profits tax will increase the return on any investment.

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Definitions:

Bizarre

Unusual, strange, or oddly fascinating, often departing significantly from what is considered normal.

Endorphin Production

The process by which the body generates endorphins, which are natural pain relievers and happiness boosters.

Opiate Abuse

The misuse of drugs derived from the opium poppy or synthetic analogs, leading to physical and psychological dependency.

GABA

Gamma-aminobutyric acid, a neurotransmitter in the brain that plays a key role in regulating nerve cell activity and inhibiting over-excitement.