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Which of the Following Ideas Is the Most Plausible

Question 40

Multiple Choice

Which of the following ideas is the most plausible?


A) Tax revenue is more likely to increase when a low tax rate is increased than when a high tax rate is increased.
B) Tax revenue is less likely to increase when a low tax rate is increased than when a high tax rate is increased.
C) Tax revenue is likely to increase by the same amount when a low tax rate is increased and when a high tax rate is increased.
D) Decreasing a tax rate can never increase tax revenue.

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