A flat-rate tax on comprehensive consumption:
A) will reduce the market rate of interest.
B) will reduce net interest received by savers in any given year.
C) will not result in any difference between the gross interest rate paid by borrowers and the net interest rate received by savers.
D) causes no loss of efficiency in labor markets.
Correct Answer:
Verified
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Q15: Substituting a comprehensive consumption tax for an
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Q18: Sales taxes in the United States generally
Q19: The retail sales tax is a major
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