Explain the types of forecasting


Response to the following problem:

Congress would like to increase tax revenues by 11 percent. Assume that the average taxpayer in the United States earns $109,000 and pays an average tax rate of 19 percent. If the income effect is in effect for all taxpayers, what average tax rate will result in a 11 percent increase in tax revenues? This is an example of what type of forecasting?

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Auditing: Explain the types of forecasting
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