There Is a Possibility That a National Sales Tax Will

question 85

Multiple Choice

There is a possibility that a national sales tax will be implemented. Many economists argue that items such as food and clothing should be exempt from such a tax because low-income people spend a greater percentage of their income on these goods than do high-income individuals. This argument is motivated by concerns over

• A) economic growth.
• B) economic stability.
• C) efficiency.
• D) equity.

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