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A government’s decision to implement a capital gains tax is a measure to:

ADiscourage investment in the stock market.

BGenerate revenue from the profits on the sale of assets.

CReduce the national debt by directly paying off creditors.

DFund social welfare programs by taxing overall income.

Answer:

B. Generate revenue from the profits on the sale of assets.

Read Explanation:

  • A capital gains tax is a tax on the profit an investor makes from the sale of a capital asset, such as real estate, stocks, or bonds.


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