Income Taxes Are an Automatic Stabilizer Because When Income Rises,ceteris

question 117

Multiple Choice

Income taxes are an automatic stabilizer because when income rises,ceteris paribus,tax receipts

• A)Fall because automatic stabilizers work against the cyclical movements of the GDP.
• B)Rise because taxes are computed on the basis of income.
• C)Fall because income taxes are regressive.
• D)Fall as taxpayers experience bracket creep.

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