Which of the Following Statements Is Most Correct

question 116

Multiple Choice

Which of the following statements is most correct?

• A)Corporations are allowed to exclude 70% of their interest income from corporate taxes.
• B)Corporations are allowed to exclude 70% of their dividend income from corporate taxes.
• C)Individuals pay taxes on only 30% of the income realized from municipal bonds.
• D)Individuals are allowed to exclude 70% of their interest income from their taxes.
• E)Individuals are allowed to exclude 70% of their dividend income from their taxes.

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Definitions:

Avoidance

A psychological mechanism or behavior aimed at steering clear from a specific stimulus or situation due to its perceived negative consequences.

Status Quo Bias

A cognitive bias that favors existing conditions or states of affairs, leading individuals to resist change.

Omission Bias

The tendency to judge harmful actions as worse, or less moral, than equally harmful omissions (inactions).

Decision Avoidance

The phenomenon where an individual or group deliberately chooses not to make a decision, often to avoid responsibility or negative outcomes.