Which one of the following will tend to decrease the rate of return on an investment?
A) elimination of a tax exemption relevant to the investment
B) reduction in tax rates
C) stabilization of inflation rates at a reasonably low level
D) increased assurance of reinvestment rates at the desired rate of return

Question

Quizplus · Accepted Answer

Elimination of a tax exemption relevant to the investment will increase the amount of taxes payable on the investment, which will decrease the rate of return on the investment.

Which One of the Following Will Tend to Decrease the Rate