Which Statement About Changing the Current Tax System in the U.S.to

question 21

Multiple Choice

Which statement about changing the current tax system in the U.S.to a cash-flow tax system is TRUE?

• A) A cash-flow tax system would encourage black market activities to avoid the sales tax.
• B) A cash-flow tax system would require giving large deductions to the richest people for saving.
• C) A cash-flow tax system would require verification of how much money people spend every year.
• D) A cash-flow tax system would require giving large deductions to the poorest people for spending.

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Definitions:

Foreign Investment

Capital investment made by one country into businesses or assets in another country.

Common European Currency

The euro (€) is the currency adopted by many European Union countries, facilitating economic transactions across member states.

Lower Inflation Rates

Lower inflation rates refer to a situation where there is a slow rate of increase in the general level of prices for goods and services, which can indicate a stable economic environment.

Foreign Subsidiary

A local operation completely owned by a foreign firm.