A VAT (Value Added Tax)

question 37

Multiple Choice

A VAT (value added tax) :

• A)Is not regressive in its effect.
• B)Has proved quite popular outside of the U.S.
• C)Is not a tax on consumption.
• D)Is used exclusively by third world (less developed)countries.
• E)None of the above.

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Definitions:

Budget Shortage

A financial situation in which expenditures exceed revenues, leading to a deficit that requires borrowing or budget cuts to correct.

Michael Cox

Likely refers to a notable figure; without specific context, it could point to an academic, author, or professional known by this name in a relevant field. For accurate identification, additional context is necessary.

Richard Alm

An economic journalist and author known for co-authoring publications on economic issues, notably with economist William A. "Sandy" Darity.

Consumption

The use of goods and services by households, which is a primary component of GDP.