Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exemption of food purchases from a sales tax reduces regressivity because: a.the percent of income spent on food generally falls as family income is higher.
Exemption of food purchases from a sales tax reduces regressivity because:
a.the percent of income spent on food generally falls as family income is higher.
b.total food purchases decline as income rises.
c.low income families spend more money on food than do high income families.
d. food exemption does not reduce regressivity.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started