If the Average Tax Rate Remains Constant as Income Changes,the

question 215

Multiple Choice

If the average tax rate remains constant as income changes,the tax is

• A) progressive.
• B) proportional.
• C) regressive.
• D) definitely fair.
• E) impossible to determine with the information given.

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Definitions:

Equal Payments

A series of payments that are the same in amount, typically made at regular intervals over a specified period of time.

Focal Date

The date selected for the calculation of equivalent values.

Compounded Annually

Definition: Refers to the calculation and addition of interest to the principal sum of a loan or deposit once every year.

Debt

money that is owed or due to be paid to someone else, often as a result of borrowing funds.