The marginal income tax rate is equal to
A. the change in the tax payment divided by the change in income.
B. the percent of total income that goes to taxes.
C. the average tax payment divided by the total tax payment.
D. the total tax payment divided by total income.
Answer: A
You might also like to view...
One of the tools of monetary policy is to change the discount rate. Since 2003
A) the Fed has not changed the discount rate. B) the Fed has pegged the discount rate to the reserve requirement. C) the Fed has kept the discount rate a fixed amount above the federal funds rate. D) the Fed has kept the federal funds rate one percentage point above the discount rate.
As the aggregate demand curve shifts to the right, what happens to the price level and output? What do these changes imply happens to the inflation rate and the unemployment rate?