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Author Question: Which of the following concerning implicit taxes and clienteles isnottrue? (Read 287 times)

michelleunicorn

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Question 1

The difference between the BTRORs of fully-taxable and tax-favored investments is called
◦ an explicit tax.
◦ an implicit tax.
◦ an effective tax.
◦ a marginal tax.

Question 2

Which of the following concerning implicit taxes and clienteles is not true?
◦ Market forces drive down the BTROR of tax-favored assets.
◦ The reduced return of tax-favored assets is an implicit tax.
◦ Investors whose tax rate exceeds that of the marginal investor can reap some benefit through the clientele effect.
◦ Marginal investors will always benefit from the implicit tax on tax-favored investments.


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Marked as best answer by michelleunicorn on Sep 13, 2020

Ashley I

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michelleunicorn

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Reply 2 on: Sep 13, 2020
Thanks for the timely response, appreciate it


flexer1n1

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Reply 3 on: Yesterday
Wow, this really help

 

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