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Which of the Following Explains the Differences in the Proportion

Question 14

Multiple Choice

Which of the following explains the differences in the proportion of income paid in consumption taxes between low-earning and high-earning families?


A) Due to luxury goods, families in high-income brackets tend to spend more of their income than lower-income families.
B) Wealthy families can afford to pay the taxes for their children's university education.
C) Families from high-income brackets buy more expensive used homes than lower-income families.
D) Families from lower-income brackets save by not having to pay consumption taxes on savings or income.
E) Families from lower-income brackets are forced to spend most of their income on food, shelter, and clothing.

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