When marginal tax rates are constant,
A. the change in taxes paid is the same as the change in income.
B. the change in taxes paid is greater than the change in income.
C. the change in taxes paid is less than the change in income.
D. there are no taxes.
E. none of these answer options are correct.
E. none of these answer options are correct.
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Initially the nominal interest rate is 8 percent and the inflation rate is 5 percent. People know that the inflation rate increases to 10 percent. What is the new nominal interest rate?
A) 8 percent B) 3 percent C) 13 percent D) 11 percent
If individuals make intertemporal choices using "hyperbolic discounting", this may create inefficient choices because individuals will: a. not take account of their time preferences
b. make choices that are inconsistent over time. c. have a preference for only consuming in the future. d. confuse nominal and real interest rates.
Assume that Joe is willing to produce a hamburger for $1, and Mary is willing to pay $3 for a hamburger. Which of the following is true?
A. Joe and Mary will only trade if the equilibrium price is less than $1. B. Joe and Mary will not trade in equilibrium. C. Joe and Mary can make a mutually beneficial exchange. D. Joe and Mary cannot make a mutually beneficial exchange.
Why are demand curves downward sloping?
What will be an ideal response?