The Laffer Curve Has Been Criticized by Mainstream Economists Because

question 7

Multiple Choice

The Laffer Curve has been criticized by mainstream economists because

• A)tax cuts are just spent, not saved as predicted by the theory.
• B)empirically, tax cuts have not led to higher tax revenues.
• C)there is no theoretical possibility of higher tax rates leading to lower tax revenues.
• D)savers look only at real interest rates, not nominal interest rates.
• E)higher tax rates do not create negative incentive effects.

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Definitions:

Direct SBA Loans

Loans provided directly by the Small Business Administration to small businesses that meet certain qualifications.

Natural Disaster

A sudden and devastating event in nature, such as a hurricane, flood, or earthquake, that causes significant damage or loss.

Energy Conservation

The practice of reducing the use of energy through more efficient systems, processes, or behaviors to preserve resources.

Small Businesses

Enterprises or firms that maintain a small number of employees, have comparatively lower volume of sales, and are usually independently owned and operated.