The income tax system of the United States can discourage investment. This tendency, however, can be offset by the stimulative effects of
A) increasing the tax credit percentage that firms can subtract from their tax liabilities.
B) allowing interest payments to be deducted from income before tax liability is computed.
C) allowing depreciation to be deducted more quickly from income before tax liability is computed.
D) lowering the real rate of interest through macroeconomic policy.
E) all of the above.
Correct Answer:
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