Which of the Following Concerning Implicit Taxes and Clienteles Is

question 31

Multiple Choice

Which of the following concerning implicit taxes and clienteles is not true?

• A)Market forces drive down the BTROR of tax-favored assets.
• B)The reduced return of tax-favored assets is an implicit tax.
• C)Investors whose tax rate exceeds that of the marginal investor can reap some benefit through the clientele effect.
• D)Marginal investors will always benefit from the implicit tax on tax-favored investments.

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Definitions:

Unconditioned Stimulus

In classical conditioning, it is any stimulus that naturally triggers a reflexive response without the need for prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response by association.

Reinforcer

A stimulus delivered after a response that makes the response more likely in the future.

Classical Conditioning

A learning process that creates associations between a naturally occurring stimulus and a previously neutral stimulus.