Vertical-Equity Is Most Closely Associated with Which of the Following

question 177

Multiple Choice

Vertical-equity is most closely associated with which of the following goals or principles?

• A)the horizontal-equity principle
• B)the goal of economic efficiency
• C)the goal of attaining social objectives
• D)the ability-to-pay principle

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Definitions:

After-tax Real Interest Rate

The interest rate that an investor earns on an investment after paying taxes, adjusted for inflation.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, typically measured on a yearly basis.

Accountants

Professionals who perform financial functions related to the collection, accuracy, recording, analysis, and presentation of a business, organization, or individual's financial operations.

Tax Code

The system of laws and regulations that govern the levying of taxes on individuals, businesses, and other entities, which outlines the rates, exemptions, and enforcement policies.