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A Differential Commodity Tax Is the Same as an Excise

question 19

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A differential commodity tax is the same as an excise tax.


Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Market Price

The present rate at which a service or asset is available for purchase or sale on the market.

Bond Discount

The difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.

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