Dynamic tax analysis assumes that A) an increase in a tax rate ...

[CharlieWard]

Dynamic tax analysis assumes that
 
  A) an increase in a tax rate may lead to a decrease in the tax base.
  B) an increase in a tax rate will lead to an increase in the tax base.
  C) an increase in a tax rate will leave the tax base unchanged.
  D) the tax base will always remain unchanged.

Question 2

In an economic model, assumptions
 
  A) must be applicable to all real-world situations.
  B) must be eliminated before being used to make sure the model is realistic.
  C) are not important in determining the usefulness of the model.
  D) define the set of circumstances in which the model is most likely to be applicable in the real world.

[yuyiding]

Answer to Question 1

A

Answer to Question 2

D

[CharlieWard]

Correct answers!

[yuyiding]

Great! Please up vote