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    Principles of Microeconomics
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    Exam 12: The Design of the Tax System
  5. Question
    Which of the Following Is an Effect of an Income
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Which of the Following Is an Effect of an Income

Question 78

Question 78

Multiple Choice

Which of the following is an effect of an income tax


A) It distorts incentives.
B) It discourages the poor to save more.
C) It discourages the rich to save more.
D) It reduces the administrative burden of taxation.

Correct Answer:

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