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It is possible to achieve vertical equity with regressive tax system. True False Question 26 (2.5 points) If the nominal exch
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Answer #1

Answer: False

EXPLAINATION: Vertical equity is a method of collecting income tax in which the taxes paid increase with the amount of earned income. In Progressive Taxation system , taxes paid used to increase with increase in income .Hence in regressive system vertical equity can not be achieved.

Answer: True

EXPLAINATION: When initially

1$= 115 ¥

1.Suppose a pen cost is 1¥, then if a person having $1 then she'll be able to purchase 115 number of pens.

2 Later when $1= 112 ¥ , means that person now can purchase only 112 pens for that same $1.

Hence clearly dollar has depreciated while yen appreciated.

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