In what type of analysis will an increase in the tax rate always lead to an increase in tax revenues?
A) ad valorem taxation
B) excise taxation
C) dynamic tax analysis
D) static tax analysis
Answer: D
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In which of the following ways can national savings be calculated?
A) By deducting net exports and government expenditure from total output B) By deducting consumption and investment from total output. C) By deducting consumption and government expenditure from total output D) By deducting investment and government expenditure from total output
Starting from short-run equilibrium, the following occurs: the U.S. dollar depreciates and wage rates rise. Moreover, the effect on the economy from the dollar depreciating is stronger than the effect on the economy from rising wage rates.What is the effect on the price level and Real GDP in the short run?
A) The price level falls and Real GDP falls. B) The price level rises and Real GDP falls. C) The price level falls and Real GDP rises. D) The price level rises and Real GDP rises. E) none of the above