Which of the following would NOT result from replacing the income tax with a consumption tax?
A)The interest rate would decrease.
B)Investment would decrease.
C)The standard of living would eventually rise.
D)The supply of loanable funds would shift right.

Question

Quizplus · Accepted Answer

Replacing the income tax with a consumption tax would not directly lead to a decrease in investment. However, it could potentially have an indirect effect on investment depending on how it affects overall economic growth and consumer spending. The other options are all possible outcomes of such a policy change.

Which of the Following Would NOT Result from Replacing the Income