A flat tax is
A. A tax system in which tax rates rise as income rises.
B. The tax rate imposed on the last dollar of income.
C. A tax system in which tax rates are constant.
D. A tax system in which tax rates fall as income rises.
Answer: C
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If government expenditure on goods and services increase by $10 billion, then aggregate demand
A) increases by $10 billion. B) increases by $10 billion multiplied by the government expenditure multiplier. C) decreases by $10 billion multiplied by the government expenditure multiplier. D) decreases by $10 billion. E) increases by $10 billion multiplied by the tax multiplier.
How do the nominal exchange rate and the real exchange rate differ?
If the world price of a good is equal to its no-trade equilibrium price, the country will import more of the good from other nations
Indicate whether the statement is true or false.
A flat or "fair" tax would increase the tax burden on the ___________ and _______________ and decrease the tax burden on the __________.
What will be an ideal response?