The more progressive the tax system, the
A)less is the built-in stability for the economy.
B)greater is the built-in stability for the economy.
C)less is the effect of crowding out on the economy.
D)greater is the severity of business fluctuations on the economy.

Question

Quizplus · Accepted Answer

A progressive tax system increases tax rates as income rises, which helps stabilize the economy by automatically reducing disposable income during booms and increasing it during recessions, thus providing greater built-in stability.

The More Progressive the Tax System, the