The Corporation Income Tax Causes

question 221

Multiple Choice

The corporation income tax causes

• A) capital to flow into the corporate sector from the noncorporate sector.
• B) capital to flow from the corporate sector to the noncorporate sector.
• C) less capital to be used in both the corporate sector and the noncorporate sectors.
• D) more capital to be used in both the corporate sector and the noncorporate sectors.

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Definitions:

Account

A record that keeps track of financial transactions, investments, or the financial state of an individual, institution, or company.

Utility Function

A mathematical representation used in economics to model satisfaction or preference that a consumer derives from the consumption of goods and services.

Risk Averse

A behavioral tendency to prefer avoiding losses over acquiring equivalent gains.

Present Value

The worth at present of an anticipated future cash amount or stream of payments, considering a particular rate of return.