A proportional tax tends to:
a. reduce income inequality.
b. increase overall income inequality.
c. leave the income distribution essentially unchanged.
d. increase income inequality among the rich.
e. generate additional tax revenues for the government.
c
Economics
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If the government wanted to efficiently limit the emission of carbon monoxide by all firms to exactly 4 million tons it could
A) issue rights to pollute worth 4 million tons and let the firms trade those rights in a market. B) appeal to firms' environmental conscience to pollute less. C) subsidize production. D) rely on the Coase Theorem.
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What is the political business cycle and how does it relate to whether the central bank should have discretion or use a rule?
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