The difference between a fixed tax and a variable tax is that
a. fixed taxes can never be changed, but variable taxes can be changed.
b. a change in fixed taxes has no effect on aggregate demand, but a change in variable taxes has an impact.
c. a variable tax changes when GDP changes, but a fixed tax does not change with GDP.
d. a variable tax can be changed easily, whereas changing fixed taxes requires a constitutional amendment.
c
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At the equilibrium rate of interest:
A) the quantity of credit demanded falls short of the quantity of credit supplied. B) the quantity of credit demanded equals the quantity of credit supplied. C) the quantity of credit demanded is zero. D) the quantity of credit supplied is zero.
Which of the following equations is incorrect?
A) AFC = ATC - AVC B) ATC = AVC - AFC C) AVC + AFC = ATC D) ATC - AFC = AVC