Bracket creep would less likely occur in which of the following?
A) a progressive income tax system
B) a regressive income tax system
C) a flat income tax system
D) none of the above
Question 2
In the medium run, an increase in inflation causes
A) an increase in the opportunity cost of holding money.
B) a reduction in the opportunity cost of holding money.
C) no change in the opportunity cost of holding money.
D) individuals to switch from holding bonds to money and increase their real money balances.
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Distribution of the Income of Americans
Household Income in the United States by Quintiles, 2009
Income per Capita versus Income of the Bottom Quintile
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