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If corporate profit were defined as the real price of capital minus the properly defined cost of capital, then: A) having a tax on corporate
If corporate profit were defined as the real price of capital minus the properly defined cost of capital, then:
A) having a tax on corporate profits would be more favorable to investment than having no tax at all.
B) having a tax on corporate profits would be less favorable to investment than having no tax at all.
C) having a tax on corporate profits would leave investment incentives the same as having no tax at all.
D) whether a corporate profits tax was more or less favorable for investment than no tax at all would depend on the rate of tax.
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