Which of the Following Decreases the Benefits of Accelerating Deductions

question 67

Multiple Choice

Which of the following decreases the benefits of accelerating deductions?

• A) decreasing tax rates
• B) smaller after-tax rate of return
• C) larger after-tax rate of return
• D) larger magnitude of transactions
• E) None of these

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Definitions:

Agricultural Risk Coverage

A form of crop insurance that pays out if the total revenue generated by all the farmers planting a given crop in a given county falls below a predetermined value.

Price Loss Coverage

A form of crop insurance that pays participating farmers if the market price of their output falls below a predetermined value.

Inelastic

Describes a situation where the demand or supply of a good is not significantly affected by changes in price.

Supply

The total amount of a good or service that is available to consumers.