Which of the Following Comparisons Is Correct

question 74

Multiple Choice

Which of the following comparisons is correct?

• A)Both individual and corporate long-term capital losses carryover as short-term capital losses.
• B)Individuals may only carry forward capital losses for five years; corporations may carry forward capital losses indefinitely;
• C)Both individuals and corporations may use the 15% tax rate on net capital gains.
• D)Corporations may carry back capital losses; individuals may not.

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Definitions:

Multiplier

An economic factor that quantifies the additional effect on income or output resulting from an injection of spending.

Deflationary Gap

A situation in economics where actual production is lower than the potential output level, often resulting in unemployment and unused productive capacity.

Equilibrium GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand in an economy.

Full Employment GDP

The output level produced by the economy when all available resources are efficiently employed, representing potential GDP under full employment.