Question: If the tax laws changed so that only $ 0 . 5 0 out of every $ 1 . 0 0 of interest paid by

If the tax laws changed so that only $0.50 out of every $1.00 of interest paid by a corporation was allowed as a tax-deductible expense, it would probably encourage companies to...
Select one:
a. use more debt financing than they presently do, other things held constant
b. use less debt financing than they presently do, other things held constant
c. keep the amount of debt financing unchanged
d. cease using debt entirely
 If the tax laws changed so that only $0.50 out of

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