An asset used in a 4-year project falls in the 5-year macrs class for tax purposes. the asset has an acquisition cost of $7.6 million and will be sold for $1.4 million at the end of the project. if the tax rate is 21 percent, what is the aftertax salvage value of the asset?

What could explain why a decrease in taxes could lead to a less-than-proportionate increase in output? a. as a result of diminishing returns to current consumption, consumers may choose to spread the extra spending over the long term rather than consuming the proceeds of a tax cut all at once. b. consumers may choose to save much of the tax cut in anticipation of having to pay higher taxes in the future. c. a decrease in taxes will necessitate lower government outlays, thus largely offsetting the higher consumption expenditures of households. d. all of the above. e. a and b only.