A government wants to reduce the budget deficit by increa\sing taxes. If the government increases the tax rate by 10% and the tax base remains cons ant, what will be the effect on the tax revenue?

Question

A government wants to reduce the budget deficit by increa\sing taxes. If the government increases the tax rate by 10% and the tax base remains cons	ant, what will be the effect on the tax revenue?

Accepted Answer

Tax revenue will increase by 10%

Post Utme Bsu 2023 Economics Question 4

A government wants to reduce the budget deficit by increa\sing taxes. If the government increases the tax rate by 10% and the tax base remains cons\tant, what will be the effect on the tax revenue?

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