If someone told you that the marginal and average tax rates both increase each time taxable income increases, would you agree? If you disagree, what is the reason?
(A) I agree.
(B) I disagree because marginal tax rates increase and decrease as taxable income increases; average tax rate increases consistently as taxable income increases.
(C) I disagree because average tax rates increase and decrease as taxable income increases; marginal tax rate increases consistently as taxable income increases.
(D) I disagree because both tax rates increase and decrease as taxable income increases.