Last Year You Earned $20,000 and Paid Taxes in the Second

Multiple Choice

Last year you earned $20,000 and paid taxes in the second tax bracket at 15 percent.This year you earned $25,000,the extra $5,000 just compensating you for inflation.However,this year you paid taxes in the third bracket at 20 percent.This illustrates the concept of

A) Stagflation.
B) Speculation.
C) Deflation.
D) Bracket creep.