The Changes Contained in the 1990 and 1993 Tax Increases

question 50

Multiple Choice

The changes contained in the 1990 and 1993 tax increases

• A) Increased the variation in the effective tax rates.
• B) Left a lot of variation in the effective tax rates.
• C) Reduced the variation in the nominal tax rates.
• D) Resulted in a top marginal tax bracket of 85 percent.

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Definitions:

Linear

Pertaining to a relationship or an equation that can be represented by a straight line in a graphical representation, illustrating a constant rate of change.

Downward-Sloping

A characteristic of a graph or curve that shows a decrease in one variable in response to an increase in another, commonly seen in demand curves.

Constant Elasticity

A condition in economics where the elasticity of one variable with respect to another is consistent across different levels of those variables.

Linear

Pertaining to something that is straight or sequential, often used to describe processes or relationships that have a constant rate of change.