Which of the Following Would Indicate That a Tax Is

question 130

Multiple Choice

Which of the following would indicate that a tax is regressive?

• A)High-income people pay $5,000 in taxes;low-income people pay $2,000.
• B)Both high-income and low-income people pay $200 each.
• C)High-income people pay 20 percent of their income in taxes;low-income people pay 10 percent.
• D)Both high-income and low-income people pay 10 percent of their income in taxes.
• E)Low-income people are exempt from the tax.

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Definitions:

Borrower's Creditworthiness

An assessment of a borrower's ability to repay their debts on time, often considered by lenders before issuing a loan.

Commercial Lending

The practice of lending money to businesses for various purposes such as operations, expansion, or capital equipment purchases.

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Financial Crisis

A situation characterized by a significant decline in the value of financial institutions or assets, leading to a loss of confidence and potentially economic downturns.