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Microeconomics 14th Edition by James Gwartney ,Richard Stroup,Russell Sobel ,David Macpherson
Edition 14ISBN: 978-1305506893Microeconomics 14th Edition by James Gwartney ,Richard Stroup,Russell Sobel ,David Macpherson
Edition 14ISBN: 978-1305506893 Exercise 5
Congress is currently considering legislation that would increase both the tax on dividends and the tax on capital gains derived from the appreciation of assets. How would an increase in the tax rate applied to dividends and capital gains income affect stock prices? Why?
Explanation
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A capital gains tax is paid when an asse...
Microeconomics 14th Edition by James Gwartney ,Richard Stroup,Russell Sobel ,David Macpherson
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