The category of federal government revenues that fluctuates the most is

Question

Quizplus · Accepted Answer

Personal income taxes are directly linked to the overall level of economic activity and therefore tend to fluctuate the most in response to changes in the business cycle. When the economy is doing well, more people are employed and earning higher incomes, which leads to an increase in personal income tax revenues. Conversely, during an economic downturn, personal income tax revenues tend to decline as fewer people are employed and earning lower incomes.

The Category of Federal Government Revenues That Fluctuates the Most