Flat Tax

question 10

Multiple Choice

Flat tax

• A)is the same tax rate to each component of the tax base.
• B)is the same tax rate to everyone.
• C)allows a tax base with no deductions with a few exemptions and expenses.
• D)all of these answer options are correct.

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Definitions:

Equal Payments

A series of identical payments made over a set period, commonly used in loans and installment purchases.

Overdrawn

A situation where an account has a negative balance due to the account holder spending more money than what is available in the account.

Annual Rate

The interest rate for a period of one year, often used for comparing the yields of investments or loans.

Borrowed

Describes money that has been taken from another party with the agreement that it will be repaid, typically with interest.