Suppose the United States levies an interest equalization tax,which taxes Americans on dividend and interest income from foreign securities.Such a tax would be intended to:
A) Encourage financial movements from the United States to overseas
B) Discourage financial movements from the United States to overseas
C) Discourage financial movements from overseas to the United States
D) None of the above

Question

Quizplus · Accepted Answer

An interest equalization tax would discourage financial movements from the United States to overseas by making those investments less attractive due to the added tax burden.

Suppose the United States Levies an Interest Equalization Tax,which Taxes