When the tax structure of a nation is progressive, as incomes increase, the tax rate:

When the tax structure of a nation is progressive, as incomes increase, the tax rate:
 a. declines.
  b. remains the same.
  c. increases.
  d. is proportional.

QUESTION 2

If the economy is in recession, explain what advice you would give the President, if you were a monetarist economist. What if you were a Keynesian?

QUESTION 3

Disinflation and deflation mean a decrease in the average price level.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

The WIN button approach to breaking a wage-price spiral was proposed by President Nixon to a joint session of Congress.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

Suppose fairness is defined as those with the highest incomes can afford to pay a greater proportion of their income in taxes. Then which of the following taxation systems would be consistent with this notion of fairness?
 a. A true flax tax.
  b. A flat sales tax on consumption purchases.
  c. A progressive tax on income.
  d. A fixed federal tax of 5,000 that everyone pays regardless of income status.