The Effective Dividend Tax Rate for a One-Year Individual Investor

question 30

Multiple Choice

The effective dividend tax rate for a one-year individual investor in 2006 is closest to:

• A)20%
• B)15%
• C)35%
• D)0%

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Definitions:

Domestic Investment

Domestic investment is the spending on capital equipment, inventories, and structures within a country by its residents and businesses.

Trade Deficits

A situation where a country's imports of goods and services exceed its exports.

Domestic Investment

The total amount of money that is invested within a country's borders by both the public and private sectors.

U.S. Saving

The portion of disposable income that is not spent on consumption of goods and services in the United States, but set aside for future use.