explanatory variables, personal income (PI) in dollars and the
personal income tax rate (R) in percentage points (e.g. if the tax
rate is 4% then R=4). Which statement below is correct based
on this equation?
- The Equation Below Forecasts Personal Income Tax Pit Using Two Explanatory Variables Personal Income Pi In Dollars 1 (1.8 KiB) Viewed 44 times
revenue would increase by $423.50, holding the tax rate
constant.
B) If personal income increases by $633, personal income tax
revenue would increase by $316.50, holding the tax rate
constant.
C) If the personal income tax rate increases by 3 percentage
points, personal income tax revenue increases by $5, holding the
personal income constant.
D) If the personal income tax rate increases by 3 percentage
points, personal income tax revenue increases by $500, holding
personal income constant.
E) All of the above.
F) None of the above.
PIT 300 + 0.5PI + 50R