A reduced market rate of return on a tax-favored investment is called an implicit tax.

Name: A reduced market rate of return on a tax-favored investment is called an implicit tax.
Brand: Quizplus
Rating: 4.9 (52 reviews)

Question

Quizplus · Accepted Answer

An implicit tax refers to a reduction in the rate of return on an investment due to its tax-favored status. This is because the tax benefits come with certain restrictions or limitations on how the investment can be used, which can impact its overall return.

A Reduced Market Rate of Return on a Tax-Favored Investment