A tax is regressive if it takes a
A. Larger number of dollars as income rises.
B. Smaller fraction of dollars as income rises.
C. Smaller fraction of dollars as income falls.
D. Larger number of dollars as income falls.
Answer: B
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Why do rent ceilings lead to shortages and black markets?
What will be an ideal response?
Briefly explain the similarities and differences of decision making by the market sector and the public sector
What will be an ideal response?
The wage and price controls of the 1940s eventually led to:
a. black markets. b. "forced uptrading." c. calls for nationalizing the nation's cattle herds. d. All of the above are correct.
If a bank sells a $1,000 security to the Fed and the required reserve ratio is 20 percent: a. the bank has $1,000 in additional excess reserves, of which it can lend $800. b. the bank has $1,000 in additional excess reserves, all of which it can lend out. c. the bank has lost an asset and must reduce its loans
d. the bank has lost a liability. e. there is no change in excess reserves, since net assets do not change.