Which of the following is NOT a type of tax based on the impact on income distribution?
A. Ad valorem tax as a distribution classification
B. Progressive tax
C. Regressive tax
D. Proportional tax
Answer: Option A
Solution (By JKSSB Mock Tests)
Ad valorem is a classification based on the method of assessment (percentage of value). Based on impact on distribution, taxes are progressive, proportional or regressive.
Explanation:
The zero lower bound refers to the constraint that nominal interest rates cannot be reduced much below zero, limiting the effectiveness of conventional monetary policy in deep recessions.
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