Which of the following best describes revenue from consumption taxes?

Revenue from consumption taxes is best described as stable and predictable. Consumption taxes, such as sales tax or value-added tax, are levied on goods and services consumed by individuals. Since these taxes are assessed based on consumption levels, they tend to generate revenue that closely correlates with spending patterns.

Individuals and businesses consistently engage in buying goods and services, regardless of economic fluctuations, making consumption taxes a reliable source of revenue for governments. This stability allows governments to plan budgets more effectively, as they can anticipate a certain level of income from these taxes based on historical trends.

While consumption tax revenue can show some sensitivity to economic changes—like increases during economic booms and possible declines in recessions—it generally remains more stable than other revenue sources such as income taxes which can fluctuate significantly with employment levels and personal income changes. Therefore, the nature of consumption taxes aligns with the description of being stable and predictable, making it the correct choice.