From the net tax function: T = t0 + t1Y, where t0 < 0 and t1 > 0, it f
From the net tax function: T = t0 + t1Y, where t0 < 0 and t1 > 0, it follows that, as income rises
a. average taxes falls and the surplus declines.
b. average taxes rises and the deficit increases.
c. average taxes falls and the deficit declines.
d. Average taxes and the deficit do not change.
ANSWER
C
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