Difference between liquidity premium and a transaction cost

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Reference no: EM131235637

1. What is the difference between a liquidity premium and a transaction cost?

2. Is it better for the taxpayer to have a before-tax or an after-tax expense? Why?

3. What types of income do taxpayers prefer? Why?

4. Why is the marginal tax rate usually lower than the average tax rate?

Reference no: EM131235637

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