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    Exam 11: The Income-Expenditure Model
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    If the Government Collects Taxes Using a Constant Income Tax
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If the Government Collects Taxes Using a Constant Income Tax

Question 41

Question 41

Multiple Choice

If the government collects taxes using a constant income tax rate t, then an increase in t will result in


A) no change to disposable income.
B) an unknown change in disposable income.
C) a higher disposable income.
D) a lower disposable income.

Correct Answer:

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