A Decrease of 1% in Both Your Tax Exemption and Your

question 29

Multiple Choice

A decrease of 1% in both your tax exemption and your income tax rate would, on net, ________.

• A) make you better off
• B) make you worse off
• C) make you neither better off nor worse off
• D) make you either better or worse off depending on your age

---

Definitions:

Imports

Products or services imported into a country from another for the purpose of selling or utilization.

Net Exports

The value of a country's total exports minus the value of its total imports, measuring the net income from foreign investments.

GDP

Gross Domestic Product, a measure of the economic performance of a nation, representing the total value of all goods and services produced over a specific time period.

Imports

are goods and services brought into one country from another for the purpose of trade or sale, contributing to a country's supply of products not locally produced.