Which Statement Is Correct

question 27

Multiple Choice

Which statement is correct?

• A)Tax credits reduce tax liability on a dollar-for-dollar basis.
• B)Tax deductions reduce tax liability on a dollar-for-dollar basis.
• C)The benefit of a tax credit depends on the taxpayer's marginal tax rate.
• D)Tax deductions are less valuable for high-income taxpayers than for low-income taxpayers.

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Definitions:

Biological

Pertaining to the science of life or living matter in all its forms and phenomena, especially with reference to origin, growth, reproduction, structure, and behavior.

Psychological

Pertaining to the mind or mental processes and how they affect behavior, emotions, and thought patterns.

Sociocultural

This term relates to the combined influence of social and cultural factors on an individual's behavior, attitudes, and perceptions.

Biological Approach

A perspective in psychology that examines behavioral and mental processes through the lens of biological science, emphasizing genetics, neurotransmitters, and the anatomy of the brain.