Author Question: If the government replaces a lump sum tax with a proportional labor income tax, then A) ... (Read 188 times)

Chloeellawright · **on:** Jun 30, 2018

If the government replaces a lump sum tax with a proportional labor income tax, then

A) employment and output increase.
B) employment increases and output decreases.
C) employment decreases and output increases.
D) employment and output decrease.

Question 2

The nominal interest rate ________.

A) makes no allowance for inflation
B) is a percentage of the amount borrowed
C) is the rate that most banks advertise
D) all of the above
E) none of the above