Examlex
State what, if anything, each of the following does to the supply or demand of loanable funds.
a.net capital outflow increases at each interest rate
b.domestic investment increases at each interest rate
c.the government deficit increases
d.private saving increases
Lump-Sum Tax
A tax that is a set amount, no matter the taxpayer's income level or economic activity.
Proportional Tax
A taxation framework where the same rate is consistently applied to everyone, with no variation based on the amount of income.
Marginal Tax Rate
The rate at which tax is charged on an additional dollar of income.
Average Tax Rate
The ratio of the total taxes paid to the total taxable income, showing the portion of income that goes to taxes.
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