A tax system in which the tax rate on everyone's first $10,000 of income is 10 percent, the tax rate on everyone's second $10,000 of income is 15 percent, and the tax rate on all income over $20,000 is 25 percent is a(n):
a. proportional tax.
b. equitable tax.
c. head tax.
d. unit tax.
e. progressive tax.
e
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Suppose the marginal propensity to consume is 0.8. A $20 billion increase in government spending shifts the IS curve
A) to the right by $100 billion. B) to the left by $20 billion. C) to the left by $16 billion. D) to the right by $2.5 billion.
The increase importance of Social Security taxes at the federal level has likely _____
a. decreased the excess burden of the federal tax sytem b. increased the efficiency of the federal tax system c. increased the progressivity of the federal tax system d. reduced the progressivity of the federal tax system
Expansionary monetary policy:
A. raises interest rates, raising both investment and net exports. B. lowers interest rates, increasing investment and decreasing net exports. C. lowers interest rates, increasing both investment and net exports. D. raises interest rates, decreasing both investment and net exports.
Are there any types of market failure that result in the underproduction of a good? Explain