Which of the Following Would NOT Result from Replacing the Income

question 150

Multiple Choice

Which of the following would NOT result from replacing the income tax with a consumption tax?

• A)The interest rate would decrease.
• B)Investment would decrease.
• C)The standard of living would eventually rise.
• D)The supply of loanable funds would shift right.

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Definitions:

Full Coverage

Refers to insurance policies or warranties that offer comprehensive protection against a wide range of potential damages or losses.

Expected Wealth

The anticipated amount of money or assets that an individual or entity forecasts to accumulate over a period.

Insurance Policy

A contract between an insurer and a policyholder wherein the insurer promises to pay for specific potential future losses in exchange for a periodic payment.

Expected Loss

The anticipated amount of loss a business may suffer due to risks or future uncertainties.