The Figure Given Below Depicts the Tax Revenue for Different

question 35

Multiple Choice

The figure given below depicts the tax revenue for different tax rates applied by the government.
Figure 11.2

-Refer to Figure 11.2. If you were a member of the Congress that aims to increase tax revenue collections, what would you recommend if the current tax rate were 80 percent?

• A) Increasing the tax rate to 100 percent
• B) Decreasing the tax rate to 30 percent
• C) Decreasing the tax rate to 70 percent
• D) Increasing the tax rate to 90 percent
• E) Decreasing the tax rate to zero percent