The burden of a luxury tax falls
a. more on the rich than on the middle class.
b. more on the poor than on the rich.
c. more on the middle class than on the rich.
d. equally on the rich, the middle class, and the poor.
c
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Which combination of monetary and fiscal policies might policymakers elect to ward off a potential recession?
A) Fed sale of bonds combined with tax rate increases B) Fed sale of bonds combined with tax rate decreases C) Fed purchase of bonds combined with tax rate increases D) Fed purchase of bonds combined with tax rate decreases
Suppose an economy experiences an increase in technological progress. This increase in technological progress will
A) allow more output to be produced with the same number of workers. B) allow the same amount of output to be produced with fewer workers. C) lead to changes in the types of goods produced. D) all of the above E) none of the above