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If the Marginal Tax Rate on Income, w, Changes

Question 20

Multiple Choice

If the marginal tax rate on income, If the marginal tax rate on income,   <sub>w</sub>, changes but government purchases don't then the government could have: A) lowered some other lower marginal rate wage tax like the social security payroll tax. B) the increased revenue due to the higher marginal tax rate is all used for real transfers. C) raised some income tax deductions. D) all of the above. w, changes but government purchases don't then the government could have:


A) lowered some other lower marginal rate wage tax like the social security payroll tax.
B) the increased revenue due to the higher marginal tax rate is all used for real transfers.
C) raised some income tax deductions.
D) all of the above.

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