There Are Two Kinds of Changes in Net Taxes: First,net

question 40

Multiple Choice

There are two kinds of changes in net taxes: First,net taxes can change if the government changes its tax or transfer policies.Second,net taxes change automatically as income rises and falls,without any change in policy.The _________ kind of change sets off the multiplier process,while the _________ kind of change occurs during the multiplier process.

• A) first;first.
• B) first;second.
• C) second;first.
• D) second;second.
• E) None of the above.

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Definitions:

Moderation

The action of reducing extremes or excesses; maintaining balance or avoiding any form of extremism.

Individual

Referring to a single person or thing, distinct from a group or aggregate.

Golden Mean

In Aristotelian ethics, the desirable middle between two extremes, one of excess and the other of deficiency, representing balance and moral virtue.

Practical Wisdom

The ability to make sound judgments and decisions based on experience and understanding, particularly in everyday matters.