Other Things the Same, Which of the Following Would Induce

question 72

Multiple Choice

Other things the same, which of the following would induce a trade deficit?

• A)a decline in saving, but not a rise in investment
• B)a rise in investment, but not a decline in saving
• C)both a decline in saving and a rise in investment
• D)neither a decline in saving nor a rise in investment

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Definitions:

Subchapter S Stock

Shares of a corporation that elects to pass corporate income, losses, deductions, and credits to shareholders for federal tax purposes.

Corporate Charitable Contributions

Contributions made by a corporation to charitable organizations which are often tax-deductible.

Corporate Formation

Corporate formation refers to the legal process involved in creating a corporate entity or company, which includes filing the necessary documents with state authorities and fulfilling all legal requirements to start business operations.

Taxable Gain

The profit that is subject to taxation, realized from the sale of assets or investments.