For Most Investors, the Equalization of the Tax Rates on Capital

question 51

Multiple Choice

For most investors, the equalization of the tax rates on capital gains and dividends did which of the following?

• A) moved the real world further from the concept of the dividend indifference theory.
• B) moved the real world closer to the concept of the dividend indifference theory.
• C) moved the real world closer to the concept of the dividend irrelevance theorem.
• D) moved the real world further from the concept of the dividend irrelevance theorem.

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Definitions:

Lorenz Curve

An illustrated chart that maps out the distribution of wealth or income among individuals in a society, revealing disparities.

Income Inequality

The unequal distribution of income among members of a society.

Gini Ratio

An assessment of the variation in income levels within a population, where 0 reflects equality in earnings and 1 reflects the highest possible inequality.

Income Inequality

The uneven distribution of income across various participants in an economy.