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:

Obsessive-Compulsive Disorder

A mental health disorder characterized by persistent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) as an attempt to alleviate anxiety.

Counting

The action of determining the total number of items in a group by assigning them numerical order.

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A mental health disorder characterized by persistent feelings of sadness, loss, or anger that interfere with one's daily activities.