To increase tax revenue, the U. S. government imposed a 2-cent tax on checks written on bank account deposits in 1932 (in today's dollars, about 34 cents per check). Complete the following statements on the impact of this tax on the money multiplier and the money supply.

A) by introducing the check tax, the government actually made the people use more cash and less checks in order to avoid paying the tax. This lead to an increase in the currency deposit ratio, which means that people have more cash and less money deposited in the banks.

B) since the currency deposit ration decreased, banks had less money to borrow, which in turn decreased the money multiplier and the banks' ability to create money.

C) carrying out this policy was like engaging in a contractionary monetary policy which was a terrible idea. The government should have done the opposite and expand the money supply and the banks' ability to create money in order to boost economic growth.

a progressive tax is a tax that imposes a lower tax rate on low-income earners compared to those with a higher income, making it based on the taxpayer's ability to pay. that means it takes a bigger percentage from high income earners than it does from low income people.

i'm pretty sure the answer is 60.