If Tax Rates Are Decreasing

question 107

Multiple Choice

If tax rates are decreasing:

• A) taxpayers should accelerate income
• B) taxpayers should defer deductions
• C) taxpayers should accelerate deductions
• D) taxpayers should defer deductions and accelerate income
• E) None of these

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Definitions:

Stock Market Crash

A rapid and severe downturn in stock prices across a significant cross-section of a stock market, resulting in a significant loss of paper wealth.

Great Depression

A severe worldwide economic downturn that took place mostly during the 1930s, starting in the United States following the stock market crash of 1929 and leading to widespread unemployment, severe deflation, and significant declines in economic output.

Herbert Hoover

The 31st President of the United States, serving from 1929 to 1933, best known for his leadership during the early years of the Great Depression.

Division Of Labor

The provision of specialized jobs.