If the Size of a Tax Increases, Tax Revenue

question 187

Multiple Choice

If the size of a tax increases, tax revenue

• A)increases.
• B)decreases.
• C)remains the same.
• D)may increase, decrease, or remain the same.

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Definitions:

National Income

The total income earned by a country's residents and businesses, including wages, rent, interest, and profits.

Government Purchases

Expenditures made by local, state, or federal government sectors on goods and services that directly absorb resources.

Net Exports

The difference between a country's total exports of goods and services and its total imports of goods and services; net exports can be a positive or negative value.

Gross Investment

A company’s total investment in plant, equipment, and inventory. Also, a nation’s plant, equipment, inventory, and residential housing investment.