A progressive income tax system is particularly effective as an automatic stabilizer because
A. In a booming economy, taxpayers move into higher tax brackets, which restrains their spending.
B. During a recession, it causes the budget deficit to fall.
C. It falls more heavily on taxpayers with high MPCs, which stimulates aggregate demand.
D. It reduces demand when income falls.
Answer: A
Economics
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Economics
In the above, which figure(s) show(s) relationship between the variables that is always positive?
A) Figure A only B) Figures C and D C) Figures A and C D) Figures A, C, and D E) Figures A and B
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