Increases in Either Interest Rates or Taxes Tend to

question 63

Multiple Choice

Increases in either interest rates or taxes tend to

• A) indicate governmental expansion of the economy.
• B) signal the trough of a recessionary market.
• C) contract the level of economic activity.
• D) increase the level of business investment.

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Definitions:

Partnership

A valid form of business collaboration that entails two or more individuals equally partaking in management and enjoying profits.

Close Corporation

A type of business corporation that is privately held, with a limited number of shareholders and restrictions on share transfers.

Shares

Units of ownership interest in a corporation or financial asset, providing a proportionate claim on the company's assets and profits.

Few Persons

A term not widely used in a specific financial or legal context; generally, it refers broadly to a small number of individuals.