A proportional tax rate
a. rises as the tax base rises.
b. falls as the tax base rises.
c. imposes an equal sacrifice on all income levels.
d. remains unchanged as the tax base rises.
d. remains unchanged as the tax base rises.
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Suppose an individual buys a new CD of her favorite musical artist. This purchase has taken place in the
A) labor markets. B) factor markets. C) resource markets. D) product markets.
In the figure above, which budget line has the lowest relative price of compact discs?
A) AD B) BD C) CD D) The relative price is equal for all three budget lines.
The high point in the business cycle is referred to as the
A) turning point. B) peak. C) boom. D) trough.
The money supply in an economy declines when, other things equal, _____
a. government spending exceeds borrowing b. government borrowing exceeds tax revenues and there is a deficit c. government borrowing exceeds the government deficit d. government spending exceeds tax revenues e. government spending exceeds borrowing and there is a surplus