Question: Q10 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!! If the corporate tax rate is increased (holding everything else constant), then fewer projects are
Q10 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!!

If the corporate tax rate is increased (holding everything else constant), then fewer projects are likely to have a positive NPV. Thus if companies have a variety of projects with various rates of return, and they accept all positive-NPV projects, then companies and thus the economy overall will tend to grow more slowly at that higher corporate tax rate. True False
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