If a tax system is progressive, then
A. the marginal tax rate is greater than the average tax rate as income rises.
B. the average tax rate is constant, but the dollar amount paid in taxes increases as income increases.
C. the average and the marginal tax rates are equal.
D. the marginal tax rate is lower than the average tax rate as income rises.
Answer: A
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If the Fed buys a T-bill from a commercial bank, how will it pay for the T-bill?
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