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A Decrease in the Marginal Tax Rate on Asset Income

Question 39

Multiple Choice

A decrease in the marginal tax rate on asset income, A decrease in the marginal tax rate on asset income, <sub>r</sub>, in the short run in the market clearing model: A) raises the stock of capital B) does not change real GDP. C) reduces the market clearing rental price of capital. D) all of the above. r, in the short run in the market clearing model:


A) raises the stock of capital
B) does not change real GDP.
C) reduces the market clearing rental price of capital.
D) all of the above.

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