If the (Average)tax Rate Falls by 20% and as a Result

question 39

Multiple Choice

If the (average) tax rate falls by 20% and as a result the tax base rises by 20%,tax revenues will

• A) rise.
• B) decline.
• C) remain unchanged.
• D) There is not enough information given to answer this question.

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Definitions:

One-Tailed

Refers to a hypothesis test in statistics that specifies the direction of the difference or relationship expected between variables, either greater or less, but not both.

Null Hypothesis

A default hypothesis that there is no effect or no difference, and any observed differences in the data are due to chance.

Statistical Test

is a mathematical procedure applied to data in order to determine the significance of relationships or differences among variables.

Sample Size

Refers to the number of observations or units included in a study, affecting the study's power and generalizability.