Suppose fairness is defined as those with the highest incomes can afford to pay a greater proportion of their income in taxes. Then which of the following taxation systems would be consistent with this notion of fairness?
a. A true flax tax.
b. A flat sales tax on consumption purchases.
c. A progressive tax on income.
d. A fixed federal tax of 5,000 that everyone pays regardless of income status.
Question 2
A sustained decrease in the price level is known as deflation.
a. True
b. False
Indicate whether the statement is true or false
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