The tax treatment of corporate profit means that corporations
A. cannot profitably issue common stock.
B. choose investment opportunities more efficiently than do other types of firms.
C. limit the things in which corporations can invest.
D. can generally avoid paying federal taxes but not state taxes.
Answer: C
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The money demand curve shifts to the right whenever there is a decrease in the interest rate
a. True b. False Indicate whether the statement is true or false
Which of the following events always would increase the size of the deadweight loss that arises from the tax on gasoline?
a. The demand for gasoline becomes more inelastic. b. The slope of the supply curve for gasoline becomes steeper. c. The amount of the tax per gallon of gasoline increases. d. All of the above are correct.
Which of the following members of the European Union has NOT adopted the euro?
A) Denmark B) Estonia C) Germany D) Greece
Inflation shocks and shocks to potential output are called ________ shocks.
A. monetary policy B. aggregate demand C. aggregate supply D. fiscal policy