The Principle of Neutrality States That, All Else Equal

Multiple Choice

The principle of neutrality states that, all else equal

A) taxes that are neutral with respect to economic decisions are generally preferable to taxes that distort economic decisions.
B) taxes that distort economic decisions are generally preferable to taxes that are neutral with respect to economic decisions.
C) taxes that are neutral with respect to economic decisions are equally preferable to taxes that distort economic decisions.
D) in the long run, all taxes are essentially neutral with respect to economic decisions.