Recall the Application About the Relationship Between Tax Rates and Tax

question 102

Multiple Choice

Recall the Application about the relationship between tax rates and tax revenues which was proposed by Yu Juo, one of the twelve wise men who succeeded Confucius in ancient China, to answer the following question(s) .
-This Application addresses the idea that

• A) cutting tax rates will decrease tax revenue.
• B) cutting tax rates may actually increase tax revenues.
• C) increasing tax rates is necessary to increase tax revenues.
• D) there is ultimately no relationship between tax rates and tax revenues.

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