The U.S. tax-transfer system (as distinct from the tax system alone) is:
A. bimodal.
B. progressive.
C. proportional.
D. regressive.
Answer: B
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In the above figure, is the Fed likely to be afraid that inflation will occur or that a recession will occur? Discuss the appropriate monetary policy that should be made to restore the economy to potential GDP
What will be an ideal response?
The table above shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on the people with the highest 40 percent of income
The government then distributes 50 percent of the tax collected to the lowest 20 percent and 25 percent to the second 20 percent and the middle 20 percent. Suppose that the before-tax group incomes remain as above. Before and after the distribution, what percentage of national income belongs to the lowest 20 percent? A) 2 percent; 10 percent B) 20 percent; 20 percent C) 5 percent; 25 percent D) 2 percent; 2 percent
A gain can be made by the holder of a call option when the current exchange rate
A) exceeds the exercise price. B) exceeds the forward price. C) is less than the futures price. D) falls to zero.
Items subtracted from tax liability are called _____
a. tax credits b. tax deductions c. tax exemptions d. tax exclusions