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    Public Finance Study Set 1
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    Exam 11: Taxation, Prices, Efficiency, and the Distribution of Income 
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    Viewed from Origin, a Price Distorting Tax Creates a New
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Viewed from Origin, a Price Distorting Tax Creates a New

Question 19

Question 19

Multiple Choice

Viewed from origin, a price distorting tax creates a new budget line with a ______ slope relative to the budget line without the tax.


A) less steep
B) more steep
C) similar
D) varying

Correct Answer:

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