Jake Invested $800 in an RRSP

question 84

Multiple Choice

Jake invested $800 in an RRSP.If he is in the 30 percent marginal tax bracket,he will

• A)pay $800 less in taxes.
• B)pay $240 less in taxes.
• C)receive an $800 tax credit.
• D)receive a $400 tax deduction.

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Definitions:

Sherman Act

An essential United States antitrust regulation that forbids monopolistic actions and fosters a competitive environment.

Price-fixing

Price-fixing is an illegal agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand.

State Law

The body of law that is created by and specific to the individual states in a country, as opposed to federal law which is applicable across the entire country.

Interstate Agreements

Contracts or treaties between two or more states within a federation like the United States, often requiring federal approval.