The optimal top marginal income tax rate (a) increases when the elasticity of taxable income rises and increases when the level of top income inequality rises 4 (b) decreases when the elasticity of taxable income rises and increases when the level of top income inequality rises* (c) decreases when the elasticity of taxable income rises and decreases when the level of top income inequality rises (d) increases when the elasticity of taxable income rises and decreases when the level of top income inequality rises

The current marginal U.S. income tax rate is positionedGroup of answer choicespretty well in the middle of the rates assessed by the majority of other countries.towards the upper end of the rates assessed by the majority of other countries.towards the lower end of the rates assessed by the majority of other countries.none of the options

Question 3 (1 point)Which of the following taxes contributes most to decreasing inequality in the distribution of income? aImport tariffs on necessities bExcise taxes cProportional income taxes dProgressive income taxes

____ income taxes and payroll taxes _____ after-tax incomes, which _____ consumption and therefore reduces aggregate expenditure.Group of answer choicesLower; raise; decreasesLower; lower; increasesHigher; raise; increasesHigher; lower; decreases

The higher is the MPS, _____________.a.Lower is the multiplier.b.Higher is the investment spendingc.Higher is the equilibrium income.d.Higher is the multiplier

What does the tax rate measure in the linear tax function? Question 14Select one:a.Marginal propensity to consumeb.Amount of any change in income diverted into tax paymentsc.Proportion of additional income allocated to consumptiond.The point where supply and demand intersect