A local property tax, such as that used in the United States, is likely to:

Question

Quizplus · Accepted Answer

A local property tax is likely to cause a flow of investment among jurisdictions, as individuals and businesses may choose to relocate to areas with lower property tax rates. This can also decrease the return to saving in all uses, as property taxes reduce the amount of money available for investment and saving. Therefore, both options (b) and (c) are correct.

A Local Property Tax, Such as That Used in the United