Which of the Following Scenarios Is Consistent with the Laffer

question 32

Multiple Choice

Which of the following scenarios is consistent with the Laffer curve?

• A)The tax rate is 1 percent,and tax revenue is very low.
• B)The tax rate is 1 percent,and tax revenue is very high.
• C)The tax rate is 99 percent,and tax revenue is very high.
• D)The tax rate is moderate (between very high and very low),and tax revenue is very low.

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