Other Things Remaining the Same, the Greater the Expected Profit

question 97

Multiple Choice

Other things remaining the same, the greater the expected profit,

• A)the less the amount of investment.
• B)the greater the amount of investment.
• C)the flatter is the investment demand curve.
• D)the steeper is the investment demand curve.

---

Definitions:

Regressive Income Tax

A tax system where the tax rate decreases as the taxpayer's income increases, placing a higher relative burden on lower-income earners.

Laffer Curve

A theoretical representation of the relationship between government revenue raised by taxation and the rate of taxation, suggesting an optimal tax rate for maximizing revenue.

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount increases, meaning higher income earners pay a larger percentage of their income in taxes compared to lower income earners.

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount increases, placing a higher financial burden on wealthier individuals.