Substitution of an Equal-Yield General Consumption Tax for an Income

question 28

Multiple Choice

Substitution of an equal-yield general consumption tax for an income tax will:

• A)improve efficiency in investment markets.
• B)impair efficiency in the labor market.
• C)increase taxes paid by those earning interest on income.
• D)both (a) and (b) are correct.

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Definitions:

Transmittal

The process of sending or conveying information, documents, or goods from one person or place to another.

Title Page

The first page of a book, document, or report, containing the title, author's name, and other relevant information.

Formal Report

A structured, detailed document prepared to convey information or findings in a professional context, often including analysis and recommendations.

Organize Time

The process of planning and exercising conscious control over the amount of time spent on specific activities, to increase effectiveness, efficiency, or productivity.