Which of the Following Statements Is False

question 63

Multiple Choice

Which of the following statements is false?

• A) Unlike taxes on capital gains or interest income, which are paid annually, taxes on dividends are paid only at the time the investor sells the stock.
• B) Deferring the payment of capital gains taxes lowers the present value of the taxes, which can be interpreted as a lower effective capital gains tax rate.
• C) Investors with longer holding periods or with accrued losses face a lower tax rate on equity income, decreasing the effective tax advantage of debt.
• D) Investors with accrued losses that they can use to offset gains face a zero effective capital gains tax rate.

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Definitions:

Love-Struck

Overwhelmed by feelings of romantic love, often to the point of being unable to think clearly or act rationally.

Amygdala

A region of the brain within the temporal lobe, involved in experiencing emotions such as fear and pleasure, and processing emotional memories.

Polyamory

The belief in, practice of, or willingness to engage in consensual nonmonogamy, typically in long-term and/or loving relationships.

Multiple Loves

The practice or ability of having romantic love towards more than one person simultaneously.