If Business Leaders Expect the New Congress to Lower the Corporate

question 163

Multiple Choice

If business leaders expect the new Congress to lower the corporate profits tax, most likely this will cause business firms, ceteris paribus, to

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

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Definitions:

Isolation

The state of being separated from others, which can be physical or emotional, often leading to feelings of loneliness.

Hopelessness

A feeling of despair and pessimism about the future, believing that there are no solutions to problems or that goals cannot be achieved.

Kinship Networks

Social networks formed by ties of blood, marriage, or adoption, providing support and promoting shared norms and values.

Self-Sufficient

Capable of meeting one's own needs without external help, showing independence in various aspects of life.