Which of the Following Would Not Be a Result of Replacing

question 202

Multiple Choice

Which of the following would not be a result of replacing the income tax with a consumption tax so that interest income was not taxed?

• 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:

Secretes Chemicals

Secretes chemicals refers to the process by which cells or glands in the body release substances, such as hormones or neurotransmitters, into the bloodstream or surrounding tissues.

Ducts

Tubes or passages in the body or in a machine through which liquids or gases move.

Central Nervous System

The complex network of nerve tissues that controls the activities of the body and mind, consisting of the brain and spinal cord.

Peripheral Nervous System

A part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.