Higher rates of inflation
a. reduce real marginal tax rates, increasing savings and investment.
b. increase real marginal tax rates, reducing savings and investment.
c. reduce real marginal tax rates, reducing savings and investment.
d. have no effect on real marginal tax rates, and no effect on savings and investment.
e. none of the above.
B
You might also like to view...
Which of the following taxes contributed the greatest percentage of total federal government tax revenues in recent years?
a. Individual income taxes. b. Corporate income taxes. c. Social Security taxes. d. Excise taxes.
If everyone in an economy had equal income, the Lorenz curve would be a curve that intersects the line of income equality at the point at which 50 percent of the population earns 50 percent of the income
a. True b. False Indicate whether the statement is true or false