Which of the Following Statements Is TRUE of Static Tax

question 5

Multiple Choice

Which of the following statements is TRUE of static tax analysis?

• A) A government receives lower tax revenues by raising the tax rate.
• B) A government receives higher tax revenues by raising the tax rate.
• C) A government cannot change it tax revenues by changing the tax rate.
• D) A change in the tax rate can raise or lower tax revenues, depending on other factors.