A proportional income tax is a tax that taxes income at a constant rate

The __________ market liquidity is, the __________ the bid-asked spread will be

A) higher; wider B) lower; narrower C) higher; narrower D) None of the above.

Which one of the following is an example of passive policy making?

A) introducing expansionary monetary policy to combat a recession B) introducing expansionary monetary policy to combat inflation C) introducing expansionary fiscal policy to combat a recession D) following a predetermined monetary policy rule