6. Suppose that instead of taxing nominal capital income, the government taxed real capital income. Use appropriate

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6. Suppose that instead of taxing nominal capital income, the government taxed real capital income. Use appropriate graphs to explain and illustrate the effect that this change would have on

a. The tax rate on capital income.

b. The supply of and demand for loanable funds.

c. Investment and the real interest rate.

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Parkin Macroeconomics

ISBN: B0070OLVAC

10th Edition

Authors: Michael Parkin

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