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rjkz [21]
3 years ago
8

Taxes a distort incentives and this distortion causes markets to allocate resources inefficiently. b do not distort incentives,

but they do result in an inequitable allocation of resources. c distort incentives and this distortion results in an inequitable allocation of resources. d do not distort incentives, but they do cause markets to allocate resources inefficiently.
Business
1 answer:
RUDIKE [14]3 years ago
7 0

Answer:

Letter a is correct. Distort incentives and this distortion causes markets to allocate resources inefficiently.

Explanation:

What happens is that when rates rise, it causes an imbalance in supply and demand, because at higher rates companies are forced to raise prices to offset tax costs, so the pass-through of consumer prices discourages consumption and as a consequence of less consumption, production also decreases, causing the inefficient allocation of market resources.

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Answer:

13%

Explanation:

As per the situation the solution of required rate of return first we need to find out the beta which is shown below:-

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

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Beta = 1

now If the market risk premium increased to 6% so,

The required rate of return = 7% + 1 × 6%

= 13%

Therefore for computing the required rate of return we simply applied the above formula.

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1 year ago
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Answer:

See below

Explanation:

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ra1l [238]

Answer:

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