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In trying to decide which of two classmates is smarter, you use the rule, "the faster people talk, the smarter they are," so you choose the classmate who talks faster.You have applied a ________ to decide who is smarter.
Marginal Tax Rate
The rate at which the next dollar of taxable income would be taxed, often applied to measure the impact of taxes on additional income.
Exchange Rate
The velocity at which one currency can be swapped for another, affecting global trade and investments.
Tax Impact
The effect that various forms of taxation have on individual or company finances, including income, capital gains, and sales taxes.
Floating Exchange Rate
A currency system where the value of a currency is allowed to fluctuate according to the foreign exchange market.
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