A positive effective corporate tax rate means that the corporation invests _____ with taxes,deductions,and investment tax credits than it would without them.A negative effective corporate tax rate means that the corporation invests _____ with taxes,deductions,and investment tax credits than it would without them.

Question

Quizplus · Accepted Answer

A positive effective corporate tax rate means the corporation is paying more in taxes, deductions, and investment tax credits than if those factors were not in place. This would result in less investment. A negative effective corporate tax rate means the corporation is paying fewer taxes, deductions, and investment tax credits than if those factors were not in place. This would result in more investment. Therefore, the best choice is C, less investment with a positive effective tax rate, and more investment with a negative effective tax rate.

A Positive Effective Corporate Tax Rate Means That the Corporation