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:

Offers

Proposals presented by one party to another as a basis for negotiations or a possible agreement in a contract.

Promissory Estoppel

A legal principle that prevents a promisor from revoking a promise when the promisee has reasonably relied on the promise to their detriment, thereby enforcing the promise to avoid injustice.

Governmental Contracts

Agreements entered into by government agencies with private entities or individuals for the supply of goods, services, or the undertaking of works.

Offerees

Individuals or entities to whom an offer is made, which they can either accept or reject.