The Difference Between a Fixed Tax and a Variable Tax

Multiple Choice

The difference between a fixed tax and a variable tax is that

A) fixed taxes can never be changed, but variable taxes can be changed.
B) a change in fixed taxes has no effect on aggregate demand, but a change in variable taxes has an impact.
C) a variable tax changes when GDP changes, but a fixed tax does not change with GDP.
D) a variable tax can be changed easily, whereas changing fixed taxes requires a constitutional amendment.