An Example of a Negative Income Tax Is

question 160

Multiple Choice

An example of a negative income tax is

• A) the minimum wage.
• B) the income tax system.
• C) the earned income tax credit.
• D) food stamps.
• E) housing assistance.

---

Definitions:

Yield Change

A change in the rate of return on an investment, often used in the context of bonds to indicate a change in interest rates or bond prices.

Price Decline

A decrease in the market price of an asset or security over a certain period.

Zero-Coupon Bond

A bond that does not pay periodic interest payments and is issued at a discount to its face value, which is paid at maturity.

Annual Coupon Bond

A type of bond that pays interest to the bondholder on an annual basis.