What is a probable effect of a rise in a country's national income?

Show Answers

Reduce the amount of tax revenue collectedLead to a deterioration in the trade balanceTrigger an automatic rise in government expendituresResult in higher injections into the economic system

Explanation

An increase in national income generally leads to higher tax revenues, not a decrease. Therefore, option A is incorrect as stated. The other options describe effects that may or may not occur depending on various factors, but the question focuses on the likely outcome related to tax receipts.