MCQOPTIONS
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| 1. |
From the net tax function: T=t0+t1Y,where t00, it follows that, as income rises |
| A. | average taxes falls and the surplus declines |
| B. | average taxes rises and the deficit increases |
| C. | average taxes falls and the deficit declines |
| D. | average taxes and the deficit do not change |
| Answer» D. average taxes and the deficit do not change | |