A tax for which the average tax rate remains constant at all levels of income is defined as a
a. regressive tax.
b. proportional tax.
c. neutral tax.
d. progressive tax.
B
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Recall the Application. In response to the financial crisis, the Fed implemented a new policy in which it began to pay interest on deposits held at the Fed
This move would ________ deposits held at the Fed and ________ the Fed's ability to make loans. A) increase; decrease B) decrease; decrease C) increase; increase D) decrease; increase
In the figure above, the economy is at an equilibrium with real GDP of $16 trillion and a price level of 110. As the economy moves toward its ultimate equilibrium, the ________ curve shifts ________
A) aggregate supply; leftward B) aggregate supply; rightward C) aggregate demand; rightward D) aggregate demand; leftward E) potential GDP; leftward
Equilibrium real income is more stable in the face of aggregate autonomous expenditure variability under
A) a floating exchange rate. B) a pegged exchange rate. C) a fixed exchange rate. D) perfect capital mobility systems.
The money we pay for a good or service
a. generally exceeds its opportunity cost. b. generally equals its opportunity cost. c. has no part in determining its opportunity cost. d. generally equals two-thirds of its opportunity cost. e. generally is only part of its opportunity cost.