A decline in the corporate income tax will __________and the firm will __________.
A) rise the user cost of capital;put more money in the bank
B) increase corporate profits;offset higher capital gains by hiring more labor
C) lower the capital user cost;invest in more capital
D) lower the rate of capital depreciation;hire more capital
E) raise the marginal product of capital;pay more taxes
Correct Answer:
Verified
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