Author Question: A change in taxes of a given amount affects an individual's consumption spending by less than that ... (Read 89 times)

penza · **on:** Jun 30, 2018

A change in taxes of a given amount affects an individual's consumption spending by less than that amount, because the marginal propensity to consume is less than 1.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Which of the following is a form of a direct tax?
a. Personal income tax
b. Sales tax
c. Excise duty
d. Import tariff
e. Value-added tax