Which of the Following Will Lower the Rate of Return

question 80

Multiple Choice

Which of the following will lower the rate of return on a stock whose price has doubled since you bought it?

• A) an increase in the capital gains tax from 15% to 20%
• B) an increase in the tax rate on dividend income from 15% to 20%
• C) persistently low inflation rates
• D) the Federal Reserve acts to lower interest rates

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Definitions:

Hourly Wages

Compensation paid to employees based on the number of hours worked, often set at a fixed rate per hour.

Sewing Machine Operators

Sewing machine operators are skilled workers who operate sewing machines to join, reinforce, decorate, or perform related sewing operations in the manufacturing of garment or non-garment products.

Sculpting Supplies

Various tools, materials, and accessories used by artists to shape and create sculptures.

Enrollment Costs

Expenses associated with signing up for or enrolling in a service, course, or institution.