Multiple Choice
To make the amount of tax revenue collected more predictable,the government decides to change the tax system from progressive to lump sum,meaning each family pays a set amount of tax per year,independent of the amount of income it is making.In this case,recessions are likely to be ________ and expansions are likely to be ________.
A) less severe; more expansionary
B) more severe; less expansionary
C) more severe; more expansionary
D) less severe; less expansionary
E) about the same; about the same
Correct Answer:

Verified
Correct Answer:
Verified
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