Vertical equity is the belief that people ______.
a. should be taxed equally regardless of income
b. should be taxed based on how much they have already paid during their lifetime
c. with different levels of income should be taxed differently
d. should be taxed only if they derive benefits from a specific government service
c. with different levels of income should be taxed differently
You might also like to view...
Which of the following is an appropriate policy for the Fed to pursue if it wants to increase the money supply?
A) lower taxes B) raise the reserve requirement C) buy U.S. Treasury bills D) raise the discount rate
Continuous rapid growth of the money supply relative to the growth of real output will most likely lead to
a. persistent inflation. b. low nominal interest rates. c. high rates of real economic growth. d. low unemployment.
According to the Phillips curve model, when expectations of inflation increase, the same level of unemployment will be associated with a higher rate of inflation.
Answer the following statement true (T) or false (F)
Why would the Fed intentionally use contractionary monetary policy to reduce real GDP?
A. The Fed intends to reduce unemployment, which occurs if real GDP is greater than potential GDP B. The Fed intends to reduce real GDP so that real GDP will grow again but at a faster pace C. The Fed intends to reduce inflation, which occurs if real GDP is greater than potential GDP