ECON Personal Finance Overall Review

proportional tax a tax rate that is fixed for all people
LEAST affected by inflation a doctor in private practice
When inflation occurs, the buying power of the dollar would decrease
BEST explanation for why banks loan money to individuals The bank would like to earn a profit by charging interest.
LEAST LIKELY to encourage governments to adopt a “sin tax” “Sin taxes” dis proportionally affects lower income groups.
Who is harmed the MOST during periods of unexpected inflation? Elderly on a fixed income and People who are paying on a loan with adjustable interest rates
federal personal income tax is an example of what kind of tax progressive tax
Which type of tax would the government use to redistribute money from the highest income earners to the lowest income earners? progressive tax
One disadvantage of an environment of low interest rates is that people have less incentive to save money in banks.

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