Bracket Creep Would Less Likely Occur in Which of the Following

question 37

Multiple Choice

Bracket creep would less likely occur in which of the following?

• A)a progressive income tax system
• B)a regressive income tax system
• C)a flat income tax system
• D)none of the above

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Definitions:

Exercise Price

The exact price at which an option's holder is allowed to purchase (for a call option) or sell (for a put option) the asset underlying the option.

Stock Price

The amount of money it would cost to purchase one share of a company; determined by supply and demand in the market.

Strike Price

The predetermined price at which the holder of an option can buy or sell the underlying asset.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase a stock, bond, commodity, or other asset at a specified price within a specific time frame.