Question
Virtually any tax will yield Blank______ tax revenue as GDP rises.
Multiple choice question.
increasing, at a decreasing rate
decreasing, at an increasing rate
increasing
decreasing
increasing, at an increasing rate
Multiple choice question.
increasing, at a decreasing rate
decreasing, at an increasing rate
increasing
decreasing
increasing, at an increasing rate
Answers
GPT-4o mini
The correct answer is **increasing, at a decreasing rate**.
As GDP rises, tax revenue typically increases along with it, but often the rate of increase in tax revenue slows down due to diminishing returns on taxation.
As GDP rises, tax revenue typically increases along with it, but often the rate of increase in tax revenue slows down due to diminishing returns on taxation.