In a Recent Research Paper Published by the European Central

question 216

Multiple Choice

In a recent research paper published by the European Central Bank,two economists concluded that

• A) tax revenue would increase in Denmark and Sweden if tax rates on capital income were reduced in those countries.
• B) tax revenue would increase in Denmark and Sweden if tax rates on labor income were reduced in those countries.
• C) tax revenue would increase in the U.S. if tax rates on capital income were reduced in the U.S.
• D) tax revenue would increase in the U.S. if tax rates on labor income were reduced in the U.S.

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