Suppose That Interest Income Is Exempted from Taxation,which Costs the Treasury

question 112

Multiple Choice

Suppose that interest income is exempted from taxation,which costs the Treasury $100 billion in tax revenues,while at the same time transfer payments are reduced by $100 billion.Together,these two changes in fiscal policy ________ national saving while moving the distribution of income toward greater ________ .

• A)reduce,equality
• B)reduce,inequality
• C)increase,equality
• D)increase,inequality
• E)do not affect,equality

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Definitions:

Green

The color associated with wavelengths of light perceived by the human eye, often symbolizing growth, nature, and fertility.

Sexual Exchange

The process of genetic material exchange during sexual reproduction, leading to genetic diversity in offspring.

Spirogyra

A filamentous green algae characterized by its spiral chloroplast arrangements, commonly found in freshwater environments.

Conjugation

Transfer of genetic material from one cell to another.