The Difference Between a Fixed Tax and a Variable Tax

question 193

Multiple Choice

The difference between a fixed tax and a variable tax is that

• A)fixed taxes can never be changed, but variable taxes can be changed.
• B)a change in fixed taxes has no effect on aggregate demand, but a change in variable taxes has an impact.
• C)a variable tax changes when GDP changes, but a fixed tax does not change with GDP.
• D)a variable tax can be changed easily, whereas changing fixed taxes requires a constitutional amendment.

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Definitions:

Intelligence Test

A standardized assessment designed to measure a person's cognitive abilities, intelligence quotient (IQ), and potential.

Wechsler Adult Intelligence Scale

A standardized test designed to measure the intelligence and cognitive ability of adults and older adolescents.

Normal Distribution

A probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Intelligence Tests

Standardized tests designed to measure a person's cognitive abilities and potential.