Suppose That the Government Were to Replace the Income Tax

question 84

Multiple Choice

Suppose that the government were to replace the income tax with a consumption tax. What would happen to the interest rate and investment, respectively?

• A) increase and increase
• B) decrease and decrease
• C) increase and decrease
• D) decrease and increase

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Definitions:

Customer Orientation

A business approach that prioritizes understanding and meeting the actual needs of customers.

Salesperson

A professional who is responsible for selling products or services to customers, often directly.

Products

Goods or services that are created through a process and then offered to the market to satisfy a need or want.

Buying Decision

The process through which a consumer decides whether or not to purchase a product or service.