You can show that a tax on consumption is regressive using, Ask an Expert

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You can show that a tax on consumption is regressive using the Keynesian consumption function. Suppose C = 1000 + .5YD, and the government collects 10% of all consumption expenditures in taxes. Calculate the taxes paid by the household earning YD = 1000 with the household earning YD = 10,000. Show that the consumption tax is regressive−show your math.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91709800

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