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In the Long Run, the Corporate Profits Tax Will Lead

Question 119

Multiple Choice

In the long run, the corporate profits tax will lead to


A) lower profits in the corporate sector, but higher profits in the noncorporate sector.
B) higher profits in the corporate sector and higher profits in the noncorporate sector.
C) higher profits in the corporate sector, but lower profits in the noncorporate sector.
D) lower profits in the corporate sector and lower profits in the noncorporate sector.

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