In 2006, the Federal Government Ended the Special Tax Treatment

question 253

Essay

In 2006, the federal government ended the special tax treatment of dividends paid by income trusts, essentially raising the marginal tax rate on dividends.Using the loanable funds market, describe what will happen to saving, investment, economic growth, the real interest rate, and the quantity of loanable funds exchanged.

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Definitions:

Infants

Very young children, usually from birth up to one year old, who are in the early stages of development.

Realize

To become fully aware of something as a fact; to understand clearly.

Dying

The process of approaching death, including the cessation of biological functions that sustain life.

Disease

A disorder of structure or function in a human, animal, or plant, especially one that produces specific symptoms or affects a specific location.