Which of the following is a feature of the Indian tax system?
A. Only indirect taxes
B. Only direct taxes
C. No progressive taxation
D. Both direct and indirect taxes
Answer: Option D
Solution (By JKSSB Mock Tests)
The Indian tax system consists of both direct taxes (income tax, corporation tax) and indirect taxes (GST, customs duty), with progressive elements in direct taxes.
Explanation:
In a liquidity trap, the nominal interest rate is at or near zero and further increases in the money supply are absorbed entirely as idle balances, rendering conventional monetary policy ineffective.
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