A government proposal to increase marginal tax rates on the ...

[debasdf]

A government proposal to increase marginal tax rates on the wealthiest 2 percent of U.S. residents is supposed to generate an additional 100 billion in tax revenues. It is likely that
 
  A) the actual revenue raised will exceed the 100 billion, because the other 98 percent of the population will increase their work effort with a more fair tax system.
  B) the actual revenue raised will be more than 100 billion, because the short-run aggregate supply curve is upward sloping.
  C) the actual revenue raised will be close to 100 billion, because the wealthy don't respond to work incentives the way poorer workers do.
  D) the actual revenue raised will be less than 100 billion, because some of the people will respond by working less and earning less income that can be taxed.

Question 2

Expansionary monetary policy ________.
 
  A) lowers tax rates B) increases interest rates
  C) increases tax rates D) lowers interest rates

[trampas]

Answer to Question 1

D

Answer to Question 2

D

[debasdf]

Gracias!

[zacnyjessica]

Excellent