To Make the Amount of Tax Revenue Collected More Predictable,the

question 70

Multiple Choice

To make the amount of tax revenue collected more predictable,the government decides to change the tax system from progressive to lump sum,meaning each family pays a set amount of tax per year,independent of the amount of income it is making.In this case,recessions are likely to be ________ and expansions are likely to be ________.

• A) less severe; more expansionary
• B) more severe; less expansionary
• C) more severe; more expansionary
• D) less severe; less expansionary
• E) about the same; about the same