Moderate

A tax which is a constant amount at all levels of GDP is termwd as ?

Correct answer: C. Lump sum tax

  • A. Fixed tax
  • B. Surcharge
  • C. Lump sum tax
  • D. None

Explanation

A lump-sum tax is a fixed monetary amount that does not change with income or GDP. In contrast, an income or proportional tax changes as the tax base changes.

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