Multiple Choice
When different consumers pay different amounts of taxes, Ricardian equivalence may fail because
A) alternative ways of collecting the same tax revenue can have different welfare effects.
B) consumers can become jealous of one another.
C) such differences in taxes create credit market imperfections.
D) higher taxes on more talented people may be politically popular.
E) such differences in taxes create welfare losses to the business community.
Correct Answer:
Verified
Correct Answer:
Verified
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