Lump Sum Taxation Is an Attractive Policy Tool Because It

question 8

Multiple Choice

Lump sum taxation is an attractive policy tool because it is efficient and equitable.

• A)True
• B)False
• C)Uncertain

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Definitions:

Federal Budget Deficit

The shortfall in the federal government's budget when its expenditures surpass its revenues.

National Debt

The total amount of money that a country’s government has borrowed by issuing securities, usually through selling bonds.

Federal Receipts

Revenues collected by the federal government, primarily through taxes, but also including other sources such as customs duties and earnings from the Federal Reserve's operations.

Recession

A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.