Suppose that instead of taxing nominal capital income, the government taxed real capital income. Use appropriate graphs
Question:
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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Step by Step Answer:
a The nominal interest rate is the nominal income from capital If the government changes the tax cod...View the full answer
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Related Book For 
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ISBN: 978-0321778109
8th edition
Authors: Michael Parkin, Robin Bade
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