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Suppose a country has a consumption tax that is similar to a provincial sales tax. If its government eliminates the consumption tax and replaces it with an income tax that includes an income tax on interest from savings, which of the following would most likely happen?
Negative Returns
A financial term referring to a loss or decline in investment, where the amount of revenue or income generated is less than the original amount invested.
Marginal Cost
The increase or decrease in the total cost that arises from producing one additional unit of a product or service.
Fixed Cost
Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.
Variable
An element, feature, or factor that is liable to vary or change, often used in the context of experiments or mathematical models.
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