A Tax That Is Structured So That People Pay the Same

question 21

Multiple Choice

A tax that is structured so that people pay the same percentage of their income in taxes is called a(n) :

• A) flat tax.
• B) regressive tax.
• C) progressive tax.
• D) excise tax.

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing in a year or less, representing a secure, low-risk investment option.

Credit Card

A Credit Card is a payment card issued by financial institutions that allows cardholders to borrow funds within a pre-approved limit for purchases or cash advances.

Price Stability

A situation in which prices in the economy do not change significantly over time, avoiding inflation and deflation.

Largest Banks

Refers to the major banking institutions that have the most significant market share, assets, and customer base in the financial industry.