In general, personal income taxes
A) rise automatically during a recession.
B) rise automatically during an expansion.
C) rise automatically during a contraction.
D) are decreased during a recession through legislative actions of Congress.
Ans: B) rise automatically during an expansion.
You might also like to view...
Explain why the average total cost curve and the average variable cost curve get closer to each other as output expands
What will be an ideal response?
One impact of a rise in the dollar's value is that
A) imports become cheaper for the U.S. consumer. B) exports will increase sharply. C) U.S. goods will become cheaper overseas. D) U.S. goods are cheaper domestically.
How do high marginal tax rates affect the economic prosperity of a nation?
a. They reduce the incentive of individuals to earn reported income. b. They encourage the nation's most productive citizens to emigrate to countries where taxes are lower. c. They discourage foreigners from investing in the country. d. All of the above are correct.
Which of the following countries is a middle-income country, which over the past century had a higher rate of economic growth than the United States?
a. Japan b. Mexico c. Canada d. Argentina