Assume That a Temporary Tax Break Has Been Put in Place

question 59

Multiple Choice

Assume that a temporary tax break has been put in place that allows for an increase in allowable depreciation.If and when the government changes the depreciation allowance back to its original amount,the desired capital stock will ________ and investment spending will ________.

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

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Definitions:

New Technology

Innovative or recently developed technological tools, systems, or methods.

Part-Time Work

Employment with fewer hours per week than a full-time position, allowing for flexibility or other commitments.

Involuntary Workers

Individuals who are employed against their will, often under threat of punishment or within coercive environments.

Suitable Full-Time Work

Employment that aligns with an individual’s skills, availability, and offers adequate compensation and working conditions.