3482EconomicsMedium
The reduction of tax?
Awill always reduce tax revenue regardless of the prior size of the tax
Bcauses a market to become less efficient
Ccould increase tax revenue if the tax had been extremely high
Dwill have no impact on tax revenue.
Correct answer
C. could increase tax revenue if the tax had been extremely high
Explanation
The correct answer is could increase tax revenue if the tax had been extremely high.