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Ceteris Paribus,when Income Increases,federal Tax Revenues

Question 58

Multiple Choice

Ceteris paribus,when income increases,federal tax revenues:


A) Decrease as taxpayers experience unemployment.
B) Decrease since income taxes are regressive.
C) Increase because automatic stabilizers work against the cyclical movements of GDP.
D) Increase because Congress typically raises the tax rates during an expansion.

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