Question

Which of the following would lead to an increase in non-tax revenue?

• A. A decrease in the corporate tax rate.
• B. An increase in interest rates on government loans to states.
• C. An increase in government spending on infrastructure.
• D. A reduction in import tariffs.

Answer 1

Answer:

B. An increase in interest rates on government loans to states.

• Higher interest rates on loans would increase the amount of non-tax revenue from interest receipts.