When the top marginal tax rate fell from 40 to 35 percent, with other things the same, the U.S. income tax system became:
A. more progressive.
B. regressive.
C. proportional.
D. less progressive.
Answer: D
You might also like to view...
Which of the following would most likely be a private good?
A) a Mariah Carey CD B) Sirius Satellite Radio is accessed through a subscription. C) Michigan Radio is the state's most listened-to public radio service. D) iTunes sells songs through their website.
Individuals who have never been the best at doing anything
A) cannot have a comparative advantage in producing any product. B) perform all tasks at a higher opportunity cost than others. C) can still have a comparative advantage in producing some product. D) must have an absolute advantage in at least ones task.
Refer to Figure 8.1. Holding other variables constant, an increase in the real wage rate will result in a
A) shift from curve D1 to curve D2. B) shift from curve D2 to curve D1. C) movement from point A to point B. D) movement from point B to point A.
Within the simple Keynesian model with lump-sum taxes, if the MPC (b) were 0.75 then if taxes rise by $200 then income
a. rises by $800. b. falls by $200. c. falls by $800. d. rises by $200. e. falls by $800.