Under a proportional tax, the fraction of income paid in taxes
a. rises as income rises.
b. is unchanged as income changes.
c. falls as income rises.
d. is proportional to the change in income.
b
Economics
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Refer to Figure 2-15. In the circular flow diagram, economic agents M represent
A) firms. B) product markets. C) factor markets. D) households.
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In the recent Global Economic Crisis, the growing unwillingness of banks and non bank financial institutions to grant loans caused
A) LM curve to shift to the right. B) LM curve to shift to the left. C) IS curve to shift to the left. D) LM curve to shift to the right.
Economics