Multiple Choice
To prevent people paying a higher percentage of their income in taxes even when their real incomes have not changed, Congress:
A) implemented a flat tax.
B) reduced the capital gains tax.
C) indexed the income tax brackets to the CPI.
D) deflated the income tax brackets to the CPI.
Correct Answer:

Verified
Correct Answer:
Verified
Q111: The measure of the cost of a
Q112: The real interest rate is the:<br>A)market interest
Q113: Unexpectedly high inflation _ borrowers and _
Q114: A nominal quantity is measured:<br>A)in physical terms.<br>B)in
Q115: Two methods used to adjust nominal values
Q117: If the CPI equaled 1.00 in 2005
Q118: The substitution bias in the CPI arises
Q119: If the real interest rate is 4 percent
Q120: A change in the average price level
Q121: One family earned an income of $28,000