To minimize dead weight loss resulting from taxation, a. tax revenue should be maximized. b. tax rates should alternate between 0 and higher rates every other year. c. tax rates should be kept stable over time. d. tax rates should increase in times of need and reduced in other periods.

To minimize dead weight loss resulting from taxation, a. tax revenue should be maximized. b. tax rates should alternate between 0 and higher rates every other year. c. tax rates should be kept stable over time. d. tax rates should increase in times of need and reduced in other periods.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 3.11P

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