Economist B believes that if tax rates are cut,tax revenue is likely to fall.This economist most likely believes that the percentage decrease in tax rates will ______________________________ percentage rise in the tax base.

Question

Quizplus · Accepted Answer

Economist B's belief that tax revenue will fall with a cut in tax rates implies they think the decrease in rates will not be sufficiently offset by an increase in the tax base, meaning the decrease in rates is larger than the increase in the tax base.

Economist B Believes That If Tax Rates Are Cut,tax Revenue