What Happens If a Government Reduces a High Tax Rate

question 147

Multiple Choice

What happens if a government reduces a high tax rate

• A)Reducing a high tax rate is less likely to increase tax revenue than reducing a low tax rate.
• B)Reducing a high tax rate is more likely to increase tax revenue than reducing a low tax rate.
• C)Reducing a high tax rate will have the same effect on tax revenue as reducing a low tax rate.
• D)Reducing a tax rate can never increase tax revenue.

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Definitions:

Vitamin K

A group of vitamins required for blood clotting and bone metabolism.

Appetite-Suppressing

Referring to substances or actions that decrease hunger and reduce the desire to eat.

Neurotransmitter

Chemical messengers that are released by neurons to communicate with other neurons or cells, influencing functions throughout the body and brain.

Appetite

The natural desire to satisfy a bodily need, especially for food or drink.