A Static Forecast of the Incremental Revenue from a Tax

question 78

Multiple Choice

A static forecast of the incremental revenue from a tax rate increase presumes that:

• A) The tax base will not change because of the rate increase.
• B) The tax base will increase by the same proportion as the rate increase.
• C) The tax base will decrease by the same proportion as the rate increase.
• D) The tax rate and the tax base are correlated.

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Definitions:

Vertebrate Evolution

The process of change and diversification in vertebrates over time, leading to the current diversity of species with backbones.

Lobe-Finned Fish

A class of fish known for having fleshy, lobed, paired fins, which are precursors to the limbs of terrestrial vertebrates.

Amniotic Egg

Egg that has an amnion, as seen during the development of reptiles (including birds) and mammals.

Reptiles

Cold-blooded vertebrates featuring scales or scutes, including snakes, lizards, turtles, crocodiles, and birds.