Which of the Following Statements Regarding Implicit Taxes and Clienteles

question 109

Multiple Choice

Which of the following statements regarding implicit taxes and clienteles is not true?

• A) The reduced return of tax- favored assets is an implicit tax.
• B) Marginal investors will always benefit from the implicit tax on tax- favored investments.
• C) Market forces drive down the BTROR of tax- favored assets.
• D) Investors whose tax rate exceeds that of the marginal investor can reap some benefit through the clientele effect.

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Definitions:

Visioning

The process of defining a future state or goal for an organization or group and creating a plan to achieve it.

Organizations

Groups or entities created to achieve specific goals, characterized by structured roles and coordination among its members.

Credited

Acknowledged or praised for one’s contributions or efforts towards a particular outcome or achievement.

Albert Schweitzer

was a German-French theologian, organist, writer, humanitarian, philosopher, and physician known for his philosophy of Reverence for Life.