Suppose and

question 26

Multiple Choice

Suppose and .Use this information to estimate the value of when . ​

• A) 0
• B) -15
• C) 3
• D) 15

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Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), representing the fraction of income or expenditure used to pay taxes.

Taxable Income

The amount of income used to calculate how much the taxpayer owes in taxes to the government.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), reflecting the percentage of income paid in taxes.