Which of the Following Statements Is NOT True

question 33

Multiple Choice

Which of the following statements is NOT true?

• A)States making use of an income tax tend to have the most progressive revenue systems overall.
• B)Sales taxes collected by state governments tend to be more stable in times of economic downturns when compared to other taxes.
• C)Inflation can drive people who get "cost of living raises" into higher tax brackets even though their real earning power does not increase.
• D)Income taxes are relatively easy for governments to collect.

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Definitions:

Debt Financing

Raising funds through borrowing, often by issuing bonds or taking out loans, to support business activities.

Depreciated

The decrease in value of an asset over time, often due to wear and tear or obsolescence.

Purchase Price

The amount of money paid to buy something, including assets like real estate, securities, or goods.

Suggested Retail Price

The price a manufacturer recommends retailers to sell their product for to consumers.