In the late 1990s, the more than expected increases in tax revenues were the result of
A)rapid economic growth.
B)rapid increases in the national debt.
C)rising rates of inflation, and therefore, nominal incomes.
D)rising balance of trade surpluses and the import duties they generated.

Question

Quizplus · Accepted Answer

Rapid economic growth typically leads to increased tax revenues due to higher levels of employment and income, as well as increased consumption and investment.

In the Late 1990s, the More Than Expected Increases in Tax