The Table Given Below Shows the Absolute Tax Amounts Under

question 47

Multiple Choice

The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2

-A proportional tax tends to:

• A)reduce income inequality.
• B)increase overall income inequality.
• C)leave the income distribution essentially unchanged.
• D)increase income inequality among the rich.
• E)generate additional tax revenues for the government.

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Definitions:

Accounting Equation

The foundational principle in accounting that states assets equal liabilities plus equity.

Note Receivable

A financial asset representing a promise to receive a specific amount of money, sometimes with interest, from another party on a future date.

Dishonored

A term used to describe a cheque or negotiable instrument that a bank refuses to pay or accept due to insufficient funds or other reasons.

Accounting Equation

A fundamental principle in finance that states assets equal liabilities plus equity.