Author Question: When the tax rate increases, the tax revenue A) always increases. B) does not change. C) always ... (Read 46 times)

PhilipSeeMore · **on:** Jun 30, 2018

When the tax rate increases, the tax revenue

A) always increases.
B) does not change.
C) always decreases.
D) may increase or decrease.

Question 2

Assume that prices have risen in a given economy by an average of 5 percent over the last nine years. If consumers base their expectations about future price movements on that knowledge alone their forecasts rely on ________.

A) reverse expectations
B) adaptive expectations
C) rational expectations
D) monetary expectations