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Economics · May / June 2016 · Paper 12 · Question 17

2281Fiscal policy

A government fixes the rate of income tax at $0.20 per dollar earned. What describes this type of taxation?

  1. Aindirect
  2. Bprogressive
  3. Cproportional
  4. Dregressive

As printed in the paper

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Correct answer: C. proportional

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