Multiple Choice
Use the following to answer questions:
-(Table: Taxes, Spending, and Income) Look at the table Taxes, Spending, and Income. Suppose Governor Meridias decides to initiate a state tax of 5% on all sales. A poor household will spend _____ of its annual income on the sales tax, while a wealthy household will spend _____ of its annual income.
A) 4.5%; 4%
B) 5%; 5%
C) 5%; 3.5%
D) 3.5%; 4.5%
Correct Answer:

Verified
Correct Answer:
Verified
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