A decrease in the marginal tax rate,with the average tax rate held constant,will
A) increase the amount of labour supplied at any real wage.
B) not affect the amount of labour supplied at any real wage.
C) decrease the amount of labour supplied at any real wage.
D) increase the amount of labour supplied at any real wage if the average tax rate is above the marginal tax rate,but decrease the amount of labour supplied at any real wage if the average tax rate is below the marginal tax rate.
Correct Answer:
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