If giving to public goods is subsidized through deductions under a progressive income tax, the government subsidizes public goods consumed by higher income individuals at greater rates than public goods consumed by lower income individuals.

Answer the following statement true (T) or false (F)

True

Rationale: Under a progressive income tax, higher income individuals face a greater marginal tax rate -- and their deductions therefore receive a higher subsidy.

Economics

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The recession that began in the United States in 2007

What will be an ideal response?

Economics

Contractionary monetary policy will result in

A) higher interest rates. B) increased rates of inflation. C) a leftward shift in the long-run Phillips curve. D) an upward shift in the short-run Phillips curve.

Economics