When the Government Attempts to Improve Equality in an Economy

question 36

Multiple Choice

When the government attempts to improve equality in an economy the result is often

• A)an increase in overall output in the economy.
• B)additional government revenue since overall income will increase.
• C)a reduction in equality.
• D)a reduction in efficiency.

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Definitions:

After-Tax Annual Interest Savings

The amount of money saved annually on interest payments after accounting for the effects of taxes, often referenced in discussions of debt refinancing or consolidation.

Refunding

The process of replacing an existing debt with a new debt, often to take advantage of more favorable borrowing terms.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify.

Leveraged Buyouts

The acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition.