7. Explain how individuals behavior is affected by the following features of the federal tax code. a.

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7. Explain how individuals’ behavior is affected by the following features of the federal tax code.

a. Contributions to charity are tax deductible.

b. Sales of beer are taxed.

c. Interest that a homeowner pays on a mortgage is tax deductible.

d. Realized capital gains are taxed, but accrued gains are not. (When someone owns a share of stock that rises in value, she has an “accrued” capital gain. If she sells the share, she has a “realized” gain.)

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Principles Of Microeconomics

ISBN: 9780324319163

4th Edition

Authors: N. Gregory Mankiw

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Question Posted: Nov 04, 2024 08:00 AM

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7. Explain how individuals behavior is affected by the following features of the federal tax code. a.

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Principles Of Microeconomics

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