What Would NOT Result from Replacing the Income Tax with a Consumption

question 105

Multiple Choice

What 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:

Earth's History

A chronological description of the physical and biological events that have occurred on Earth from its formation to the present.

Precambrian

A very long interval of geologic time, from the formation of the solid earth to the beginning of the Paleozoic; it is equivalent to 90% of geologic time.

Precambrian

Referring to the eon that constitutes the earliest part of Earth's history, which ended approximately 542 million years ago.

Geologic Time

The exceptionally long period of time dealt with by geology; the time extending from the formation of Earth to the beginning of written history.