The tax base of the value added tax and a turnover tax are the same

The quantity theory of money tells us that real money balances are proportional to income, since ________

A) velocity is assumed constant in the short run B) the supply and demand of money are equal in equilibrium C) changes in the quantity of money lead to proportional changes in the price level D) all of the above E) none of the above

Which of the following is the marginal tax rate?

A. The fraction of each additional dollar of income that must be paid in taxes. B. The total tax paid divided by total income. C. The tax rate paid by the average taxpayer.