The tax rates embodied in the federal personal income tax are such that O a rising absolute amount, but a declining proportion, of income is paid in taxes. O the marginal and average tax rates are equal, making the tax progressive. O the average tax rate rises more rapidly pan does the marginal tax rate as income rises. O the marginal tax rate is higher than the average tax rate, causing the average tax rate to rise as income rises.

ECON MACRO
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ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter3: Economic Decision Makers
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QUESTION 13
The tax rates embodied in the federal personal income tax are such that
a rising absolute amount, but a declining proportion, of income is paid in taxes.
the marginal and average tax rates are equal, making the tax progressive.
the average tax rate rises more rapidly pan does the marginal tax rate as income rises.
the marginal tax rate is higher than the average tax rate, causing the average tax rate to rise as income rises.
QUESTION 14
Transcribed Image Text:QUESTION 13 The tax rates embodied in the federal personal income tax are such that a rising absolute amount, but a declining proportion, of income is paid in taxes. the marginal and average tax rates are equal, making the tax progressive. the average tax rate rises more rapidly pan does the marginal tax rate as income rises. the marginal tax rate is higher than the average tax rate, causing the average tax rate to rise as income rises. QUESTION 14
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