Economists feel that taxing nominal capital gains imposes costs on the economy due to

A. increased consumption.
B. reduced consumption.
C. increased investment.
D. reduced investment.


Answer: D

Economics

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The lower the level of income in a country, the

A) less income elastic is the demand for food. B) more income elastic is the demand for food. C) more negative the income elasticity of the demand for food. D) Both answers A and C are correct. E) None of the above is correct.

Economics

When the Phillips curve was viewed as a structural relationship, it was believed that the Fed could

A) permanently reduce the unemployment rate if it were willing to accept an increase in the inflation rate. B) permanently reduce the inflation rate as it permanently reduced the unemployment rate. C) permanently reduce the unemployment rate if it were willing to increase the real interest rate. D) permanently reduce the inflation rate if it were willing to decrease the real interest rate.

Economics

Economists normally assume that the goal of a firm is to earn (i) profits as large as possible, even if it means reducing output. (ii) profits as large as possible, even if it means incurring a higher total cost. (iii) revenues as large as possible, even if it reduces profits

a. (i) and (ii) only b. (i) and (iii) only c. (ii) and (iii) only d. (i), (ii), and (iii)

Economics

If businesses buy fewer capital goods, and nothing else changes, then total expenditures on U.S. goods and services will decrease. And if total expenditures decrease, then __________ will decrease; consequently, the __________ curve will shift __________

A) aggregate demand (AD); AD; rightward B) short-run aggregate supply (SRAS); SRAS; leftward C) aggregate demand (AD); AD; leftward D) interest rates; AD; leftward E) prices; AD; rightward

Economics