The corporate income tax is ultimately paid by all of the following except
A) owners of the corporation.
B) the corporation's debtors in the form of lower rates of return on the corporation's bonds.
C) employees in the form of lower wages.
D) customers in the form of higher prices.
Question 2
If the quantity of goods and services produced in the economy decreases,
A) real GDP would certainly increase. B) nominal GDP would certainly increase.
C) it may be possible for nominal GDP to increase. D) it may be possible for real GDP to increase.
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Introduction to Corporate Finance, 5th