If Taxes Became More Progressive, We Would Expect That Whenever

question 11

Multiple Choice

If taxes became more progressive, we would expect that whenever there was an economic fluctuation

• A)there would be no difference in how automatic changes in taxes affected spending.
• B)automatic changes in taxes would become less stabilizing.
• C)discretionary fiscal policy would become more effective.
• D)automatic changes in taxes would become more stabilizing.
• E)discretionary fiscal policy would become less effective.

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Definitions:

Degrees of Freedom

Represents the number of independent pieces of information available to estimate another piece of information or parameter in a dataset.

Test Statistic

A value calculated from sample data during a hypothesis test, used to decide whether to reject the null hypothesis.

T Value

A value derived from a T-test, used to determine if there is a significant difference between two groups.

Independent-Samples T Test

A method of statistical analysis that compares the average values of two separate groups to see if their differences are statistically meaningful.