A capital gains tax rate reduction stimulates investment because
A) it is one of the determinants of the rental price of capital.
B) it determines in part shareholders' total tax liabilities from capital stock investment.
C) research has shown that a tax policy that lowers the rental price of capital by 1 percent raises investment by about 1 percent over several years.
D) all of the above.
E) none of the above.
Correct Answer:
Verified
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