Suppose there is a corporate tax on cash earnings minus labor costs.As a result:
A) the return per dollar of investment per period is smaller for a given level of investment than it would be without the tax.
B) the marginal cost of investment is higher than it would be without the tax.
C) firms invest more than they would without the tax.
D) the return per dollar of investment per period is larger for a given level of investment than it would be without the tax.
Correct Answer:
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