If the government proposed a one-time tax of 25 on accumulated ...

[fahad]

If the government proposed a one-time tax of 25 on accumulated wealth, this would likely
 
  A) reduce the incentive for individuals to accumulate wealth.
  B) increase the incentive for individuals to accumulate wealth.
  C) have no impact on individual accumulation of wealth since it is a one-time tax.
  D) All of the above are equally likely to happen.

Question 2

The size effect and the diffusion effect always occur in isolation.
 
  Indicate whether the statement is true or false

[Pswine]

Answer to Question 1

A

Answer to Question 2

FALSE