Question 1
What determines tax revenues?
◦ the income tax rate
◦ the rate of interest
◦ the money supply in the economy
◦ the rate of inflation
Question 2
Which of the following is
incorrect regarding tax revenues?
◦ they increase during recessions
◦ they change with changes in the tax rate
◦ they are a revenue source in the government's budget
◦ they increase during economic expansions