If the Supply of Saving Is Not Perfectly Inelastic in the Nation

question 15

Multiple Choice

If the supply of saving is not perfectly inelastic in the nation, then which of the following taxes will cause efficiency loss in capital markets

• A) a general wealth tax
• B) a national tax on real estate
• C) a consumption tax
• D) both a and b

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Definitions:

Leasehold Estate

An interest in land that grants the tenant exclusive possession until a specific date.

Restrictive Covenant

A clause typically in an employment or real estate contract that limits what the buyer or employee can do, ensuring certain actions are refrained from.

Tenants in Common

A form of co-ownership where individuals hold undivided interests in a property without rights of survivorship, allowing different ownership shares.

Joint Tenancy

A form of property ownership in which two or more individuals hold equal rights to the entire property, and upon the death of one, the survivor(s) automatically assume the deceased's part.