Economics 0455 · IGCSE · Fiscal policy

Fiscal policy — practice question

At what point does a tax become regressive?

  • Awhen some goods have a lower tax than others
  • Bwhen the tax as a proportion of income decreases as income increases
  • Cwhen the tax is linked to the rate of inflation
  • Dwhen the tax is on incomes rather than on goods or services

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