Corporate Profits Distributed as Dividends Are

question 310

Multiple Choice

Corporate profits distributed as dividends are

• A)tax free.
• B)taxed once.
• C)double taxed.
• D)triple taxed.

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Definitions:

Taxes

Mandatory monetary fees or different forms of taxes levied on a taxpayer by a government entity to finance government operations and a range of public expenses.

Permanent Tax

A concept in fiscal policy describing taxes that are intended to be implemented indefinitely or without a predetermined end date.

Aggregate Demand

The total market demand for goods and services within an economy at a fixed price level over a certain time period.

Crowding-Out Effect

The offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending.