Answered: As GDP rises in a proportional tax…

As GDP rises in a proportional tax system, the average tax rate Select one: a) Either falls or increases b) Increases c) Falls d) Remains constant e) None of the answers are correct

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter12: The Public Sector

Section: Chapter Questions

Problem 4SQ

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Question

As GDP rises in a proportional tax system, the average tax rate

Select one:

a) Either falls or increases

b) Increases

c) Falls

d) Remains constant

e) None of the answers are correct

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