Which of the Following Is True of the Depreciation Tax

question 46

Multiple Choice

Which of the following is true of the depreciation tax shield?

• A) It increases annually with the rate of inflation.
• B) It decreases annually in nominal terms.
• C) It is not altered by inflation.
• D) The real value of the depreciation is fixed.

---

Definitions:

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, measured in millimeters of mercury (mmHg).

Obese

A condition characterized by excessive body fat accumulation, which presents a risk to health.

Hypertension

A medical condition characterized by consistently high blood pressure, which can lead to serious cardiovascular complications if not managed.

Coronary Heart Disease

A condition characterized by the narrowing or blockage of the coronary arteries, leading to a reduced blood flow to the heart muscle.