If the Tax Laws Were Changed So That $0

question 8

True/False

If the tax laws were changed so that $0.50 out of every $1.00 of interest paid by a corporation was allowed as a tax-deductible expense, this would probably encourage companies to use more debt financing than they presently do, other things held constant.

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Definitions:

Semitendinosus

A muscle in the back of the thigh, part of the hamstring group.

Gastrocnemius

A large muscle located on the back portion of the lower leg, forming part of the calf, that aids in walking, running, and jumping.

Biceps Femoris

A muscle of the thigh that is part of the hamstrings, involved in knee flexion and thigh extension.