Is beer taxation a regressive, proportional, or progressive tax if viewed as a point in time? Please explain your answer. What about if viewed over a person's lifetime? If your answer changes, please explain why

What will be an ideal response?

Viewed at a point in time, beer taxation is regressive because the low-income people drink more beer as a percentage of their income than do higher income individuals. Viewed over a lifetime, however, beer taxation is probably progressive because a large amount of the beer consumption among low-income individuals during any period is among college students, who will, on average, have higher incomes over their lifetimes.

Economics

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If the marginal propensity to consume (MPC) is 0.80, the value of the spending multiplier is:

a. 2. b. 5. c. 8. d. 10.

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