Multiple Choice
Suppose in some country that the first $5,000 of interest income is exempt from income tax.If the government then removed this exemption
A) the interest rate and investment would rise.
B) the interest rate would rise and investment would fall.
C) the interest rate would fall and investment would rise.
D) the interest rate and investment would fall.
Correct Answer:
Verified
Correct Answer:
Verified
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