According to dynamic tax analysis, continually increasing the tax rate will eventually
A) cause an increase in the tax base.
B) have no impact on the tax base.
C) cause a decrease in the tax base.
D) result in an initial decrease in the tax base followed ultimately by a rise in the tax base.
Answer: C
Economics
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Explain how the largest sources of state tax revenues differs from the largest sources of federal tax revenues
What will be an ideal response?
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In the wake of worsening relations with China, some Americans called for an increase in tariffs on Chinese products coming into America. If higher tariffs are imposed on clothing produced in China, the price of clothing in America would
A) decrease. B) increase. C) not change. D) first increase then decrease. E) first decrease then increase.
Economics