Private savings and thus investment could be increased by which of the following government policies, ceteris paribus?
A) elimination of the corporate income tax
B) allowing corporations to use "replacement cost accounting"
C) exemption of interest earnings from income taxation
D) all of the above.
D
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There were a huge number of bank failures between
A. 1930 and 1933. B. 1933 and 1936. C. 1936 and 1939. D. 1939 and 1942.
Differences in tastes among nations
a. make gains from trade possible even in the absence of differences in resource endowments b. make gains from trade possible only when there are differences in resource endowments c. negate any potential gains from trade d. are caused by differences in resource endowments e. occur only among countries whose people are of different religions
A profit-maximizing monopolist
A. is just as socially efficient as a perfectly competitive firm in allocating resources to production since he or she, too, seeks the largest return on his or her investment. B. produces an output level at which marginal utility exceeds marginal cost. C. produces more output than a perfectly competitive industry. D. always produces in the inelastic region of his or her demand curve.
It is true that the distribution process carried out by the price system
a. accomplishes the task more efficiently than central planners would. b. favors the rich. c. is superior to other rationing mechanisms because it is able to pay attention to individual consumer preferences. d. All of the above are true.