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If All Variable Taxes in the United States Were Removed

Question 88

Multiple Choice

If all variable taxes in the United States were removed and only fixed taxes remained, what would be the effect on the expenditures schedule?


A) The expenditure schedule will shift upward and become steeper.
B) The expenditure schedule will shift upward and become less steep.
C) The expenditure schedule will shift downward and become less steep.
D) The expenditure schedule will shift downward and become steeper.

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