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    Principles of Economics Study Set 1
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    Exam 21: Saving and Capital Formation
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    Holding Other Factors Constant, an Increase in the Tax Rate
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Holding Other Factors Constant, an Increase in the Tax Rate

Question 32

Question 32

Multiple Choice

Holding other factors constant, an increase in the tax rate on revenue generated by capital will:


A) increase national saving.
B) decrease national saving.
C) increase investment.
D) decrease investment.

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