A regressive tax:
a. is designed to take a larger percentage of higher incomes as compared to lower incomes
b. is designed in such a way that as a person's income rises, the amount of tax as a proportion of income rises.
c. takes a greater proportion of the income of lower-income groups than of higher-income groups.
d. is considered to be the most equitable type of tax.
c
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The above figures show the market for oranges. Which figure(s) shows the effect of an increase in the price of bananas, a substitute for oranges?
A) Figure A B) Figure C C) Figure D D) Figure A and C
A bank creates money when it:
a. gets new checkable deposits which the depositor formerly held as cash. b. has a loan paid off, which creates excess reserves for the bank. c. makes a loan from its excess reserves. d. holds back excess reserves because of an increase in the required reserve ratio. e. gets more excess reserves because of a decrease in the required reserve ratio.