Transforming the tax base of an income tax by subtracting savings has the advantage that _____
a. a progressive rate structure can be applied to a consumption tax
b. all income can be taxed at a flat rate
c. it double taxes income
d. it guarantees progressivity
a
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In the foreign exchange market, how does a change in expected future U.S. exchange rate affect the demand for dollars?
What will be an ideal response?
An advantage of a partnership over a corporation is that
A) a partnership's profits are taxed only once, while retained profits of a corporation are taxed twice. B) a partnership's owners usually have limited liability, while the entire wealth of owners of a corporation is at risk. C) a partnership has a perpetual life, while a corporation dies with its owners. D) a partnership's cost of capital is low relative to that of a corporation.