Income effect is in effect for all taxpayers-dynamic static

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Congress would like to increase tax revenues by 13 percent. Assume that the average taxpayer in the United States earns $48,000 and pays an average tax rate of 20 percent.

a. If the income effect is in effect for all taxpayers, what average tax rate will result in a 13 percent increase in tax revenues?

b. This is an example of what type of forecasting? Dynamic Static

Reference no: EM131202567

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