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The Existing Tax Rates on Income in the United States

Question 62

Multiple Choice

The existing tax rates on income in the United States:


A) act as an automatic stabilizer.
B) curtail spending slightly when incomes rise because people have to pay more in taxes when incomes are high.
C) encourage spending slightly when incomes fall because people pay less in taxes when incomes are low.
D) All of these are true.

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