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A) What is the difference between the marginal tax rate and the average tax rate? What...

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Economics

A) What is the difference between the marginal tax rate and theaverage tax rate? What is the difference between the statutory taxrate and the effective tax rate? Explain.

B) Compare and contrast tax deductions and tax credits in termsof both efficiency and vertical equity.

C)Is it possible for the government to impose a tax that causesthe market price of the good to fall? Explain.

Answer & Explanation Solved by verified expert
4.4 Ratings (828 Votes)
A Marginal tax rate means calculation of percentage of tax applied to income for each tax bracketIt means it is the percentage of tax calculated of the taxable income on which exceeding threshold limitMarginal tax rate is the calculation of marginal tax While average tax means the    See Answer
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