If corporate profit were defined as the real price of capital minus the properly defined cost of capital, then:
A) having a tax on corporate profits would be more favorable to investment than having no tax at all.
B) having a tax on corporate profits would be less favorable to investment than having no tax at all.
C) having a tax on corporate profits would leave investment incentives the same as having no tax at all.
D) whether a corporate profits tax was more or less favorable for investment than no tax at all would depend on the rate of tax.
Correct Answer:
Verified
Q31: Net investment is the:
A) business fixed investment
Q32: Because of the way that U.S. tax
Q33: Other things being equal, the ratio of
Q34: The investment tax credit:
A) enables a firm
Q35: _ is a share of ownership in
Q37: Other things being equal, the neoclassical model
Q38: Tobin's q equals the:
A) cost of buying
Q39: The function showing total spending on investment
Q40: The theory behind Tobin's q indicates that:
A)
Q41: During a financial crisis, such as the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents