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Q. |
## 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. average taxes falls and the deficit declines |

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