If the Average Tax Rate Increases as Income Increases,then the

question 137

Multiple Choice

If the average tax rate increases as income increases,then the

• A) tax is regressive tax.
• B) tax is a progressive tax.
• C) tax is a proportional tax.
• D) income is tax exempt so that no tax needs to be paid on it.
• E) marginal tax rate must be falling as income increases.