Recall the Application about the relationship between tax rates and tax revenues which was proposed by Yu Juo, one of the twelve wise men who succeeded Confucius in ancient China, to answer the following question(s).
-According to this Application, Yu Juo proposed that the Chinese government should ________ the tax rate in the case of a famine if the government had insufficient funds, and this would ________ the standard of living.
A) increase; increase
B) cut; increase
C) cut; decrease
D) increase; decrease

Question

Quizplus · Accepted Answer

Yu Juo proposed cutting the tax rate to increase the standard of living by making it easier for people to afford necessities during a famine, which would also encourage economic activity and potentially increase tax revenues through higher volume of transactions.

Recall the Application About the Relationship Between Tax Rates and Tax