During an Expansion, Tax Revenues ________, While During a Recession

question 218

Multiple Choice

During an expansion, tax revenues ________, while during a recession, tax revenues ________.

• A) decrease; increase
• B) increase; decrease
• C) remain stable; decrease
• D) fail to cover expenditures; fail to match transfer payments

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Definitions:

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction.

Not-for-Profit Organization

An organization that operates for purposes other than making a profit, often focusing on social, educational, or charitable objectives.

Military Organization

An entity structured to use armed forces for purposes of defense, security, or warfare operations.

S Corporation

A type of corporation in the United States that is taxed under Subchapter S of the Internal Revenue Code, with profits passing through to shareholders to be taxed at individual income tax rates.