What Would NOT Result from Replacing the Income Tax with a Consumption

question 105

Multiple Choice

What would NOT result from replacing the income tax with a consumption tax?

• A) The interest rate would decrease.
• B) Investment would decrease.
• C) The standard of living would eventually rise.
• D) The supply of loanable funds would shift right.

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Definitions:

Labour Unions

Organizations representing workers' interests, aiming to improve working conditions, wages, and benefits through collective bargaining.

Recruiting Source

Various channels through which organizations find and attract candidates for employment, such as job boards, social media, and employee referrals.

Private Employment Agencies

Organizations that match employers with employees, often specializing in specific sectors or career levels.

Occupations

Various forms of employment or professions where individuals engage in specific tasks and responsibilities to earn a living.