a . earn more interest on their capital costs . b . reduce capital costs to zero . c . reduce labor costs . d . increase the time period over which assets are depreciated .
3 . If corporations maximize profits , the short-run incidence of a tax on its profits will be borne by :
a . consumers . b . all investors . c . corporate shareholders . d . workers .
4 . Assuming that corporations maximize profits and investors seek to maximize the return to their investments , the long-run impact of a corporate income tax is to :
a . reduce the incomes of corporate shareholders only .