Multiple Choice
Assume that a temporary tax break has been put in place that allows for an increase in allowable depreciation.If and when the government changes the depreciation allowance back to its original amount,the desired capital stock will ________ and investment spending will ________.
A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase
Correct Answer:
Verified
Correct Answer:
Verified
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