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Assume that both the corporate and noncorporate sectors are in long-run equilibrium before the imposition of a corporate profits tax. In the short run, the imposition of a corporate profits tax will ________ profits in the noncorporate sector, but ________ profits in the corporate sector.
A) increase; decrease
B) not change; not change
C) not change; decrease
D) decrease; increase
On Jun 27, 2024