In one of the MC, the question is:
'Other things being equal, which one of the following government policies is most likely to increase the inequality of income in the Australian economy?'
(a)A more progressive income tax
(b)a reduction in the cost of government services
(c)increased rebates to lower income earners
(d)a heavier reliance on regressive taxation
Answer is (b), but I thought it is (d)?
And another question. If Australia 'donates' money to another country, is that recorded as a debit in financial account? Cos I thought it's irreversible (doesn't need returns)?
'Other things being equal, which one of the following government policies is most likely to increase the inequality of income in the Australian economy?'
(a)A more progressive income tax
(b)a reduction in the cost of government services
(c)increased rebates to lower income earners
(d)a heavier reliance on regressive taxation
Answer is (b), but I thought it is (d)?
And another question. If Australia 'donates' money to another country, is that recorded as a debit in financial account? Cos I thought it's irreversible (doesn't need returns)?
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