Suppose a taxpayer has an income of $120,000 and a taxable income of $80,000, and pays $20,000 in taxes. If the taxpayer says she is taxed at a 25 percent tax rate, she is referring to the
A. Effective tax rate.
B. Marginal tax rate.
C. Nominal tax rate.
D. Average tax rate.
Answer: C
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It is believed, by many, that the underground economy has grown in the United States in recent years causing c to increase and to be volatile
This event implies that the money multiplier should ________ and that the Fed should have a(n) ________ job in controlling the money supply. A) increase; easier B) increase; more difficult C) decrease; easier D) decrease; more difficult
Lump-sum taxes are equitable but not efficient
a. True b. False Indicate whether the statement is true or false
Permanent tax cuts shift the AD curve
a. farther to the right than do temporary tax cuts. b. not as far to the right as do temporary tax cuts. c. farther to the left than do temporary tax cuts. d. not as far to the left as do temporary tax cuts.
If the demand for agricultural output is highly inelastic, an improvement in the technology used in the agricultural industry most likely will cause a:
A. large drop in the price of agricultural output combined with a large decrease in quantity. B. large drop in the price of agricultural output combined with a small increase in quantity. C. small drop in the price of agricultural output combined with a large increase in quantity. D. small drop in the price of agricultural output combined with a small increase in quantity.