If All Fixed Taxes in the United States Were Removed

question 189

Multiple Choice

If all fixed taxes in the United States were removed and only variable taxes remained, what would be the effect on the expenditures schedule?

• A)The expenditure schedule will shift upward.
• B)The expenditure schedule will shift downward.
• C)The expenditure schedule will become flatter.
• D)The expenditure schedule will become steeper.

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Definitions:

Merchant

A person or company engaged in the business of selling goods or services.

Agent

An individual or entity authorized to act on behalf of another (known as the principal) in dealings with third parties.

Infant

An infant refers to a very young child or baby, often defined legally as a person under a certain age, typically under one year old, but the term can extend to younger children in different contexts.

Contract

An enforceable arrangement under law, involving multiple parties.