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Which of the following changes in taxes would lead to the greatest increase in consumption?
Coupon Interest Rate
The fixed rate of interest paid by a bond to its holder at specified intervals until maturity.
Market Interest Rate
The prevailing rate of interest determined by supply and demand in the money market that borrowers must pay and lenders receive.
Operating Lease
A contract that allows the use of an asset but does not convey rights of ownership, typically used for short-term leasing arrangements.
Capital Lease
A lease classified as a financial transaction where the lessee gains substantial control over an asset, treated like an asset purchase.
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