A Local Property Tax, Such as That Used in the United

question 13

Multiple Choice

A local property tax, such as that used in the United States, is likely to:

• A)increase investment in the economy.
• B)cause a flow of investment among jurisdictions.
• C)decrease the return to saving in all uses.
• D)both (b) and (c) are correct.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the quantity of a good consumers are willing and able to purchase and its price.

Income

Money that an individual or business receives in exchange for providing a good or service or through investing capital.

Substitutes

are goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Demand Curve

A graph showing the relationship between the quantity of a good or service that consumers are willing to buy and its price.