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Suppose There Is a Linear Relationship Between National Income and Total

Question 91

Multiple Choice

Suppose there is a linear relationship between national income and total tax revenue.If national income is $100 million,then $25 million is collected as tax revenue .If national income is $200 million,then $40 million is collected in tax revenue.What is the marginal response in tax revenue to a change in national income?


A) 15 million
B) 0.15 million
C) 15
D) 0.15
E) -15

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