Policymakers Focus on Marginal Tax Rate Changes When Making Changes

Multiple Choice

Policymakers focus on marginal tax rate changes when making changes in the tax code because the marginal tax rate

A) determines how tax revenue will change as national income increases.
B) affects people's willingness to work, save, and invest.
C) always equals the average tax rate which is harder to measure.
D) determines how much revenue the government will have to spend.