Dynamic tax analysis is based on the recognition that as tax rates are increased
A. tax revenue collections will change at the same rate as the tax rates.
B. tax revenue collections will eventually decline.
C. tax revenue collections will continually increase.
D. tax revenue collections will increase at a faster rate than the tax rate change.
Answer: B
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Suppose you withdraw $1,000 from your savings account and put it under your mattress. Briefly explain how this will affect M1 and M2
What will be an ideal response?
Suppose there are only two countries in the world, Mexico and the United States. In the foreign exchange market, it follows that the
A) demand for pesos is linked to the demand for dollars. B) demand for pesos is linked to the supply of pesos. C) supply of pesos is linked to the demand for dollars D) supply of pesos is linked to the supply of dollars. E) none of the above
Mauritius, an island off the coast of Africa, competes with other countries producing goods with low-skilled labor. In 2006, it was reported that its "...factories have been exposed to ... competition from China, India, and other Asian mass producers." As a result, "the main export industry has seen a 30% reduction in volume..." The decrease in exports will cause __________ and the price level will __________.
a) a downward shift in the AE curve; decrease as the AD curve shifts leftward in the short run b) an upward shift in the AE curve; increase as the AD curve shifts rightward in the long run c) a leftward shift in the AD curve; fall in the short run and rise in the long run d) a leftward shift in the AD curve; rise in the long run as goods become more scarce.
If in the short run a firm's total product is increasing, then its:
A. marginal product must also be increasing. B. marginal product must be decreasing. C. marginal product could be either increasing or decreasing. D. average product must also be increasing.