# Question

Indicate how each of the following could impact tax evasion and explain why the effect takes place:

a. An increase in MTRs.

b. A decrease in MTRs.

c. An increase in the complexity of the tax code.

d. An increase in the probability that a taxpayer's return will be audited.

a. An increase in MTRs.

b. A decrease in MTRs.

c. An increase in the complexity of the tax code.

d. An increase in the probability that a taxpayer's return will be audited.

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