According to the Laffer Curve, When Tax Rates Are Low

question 241

Multiple Choice

According to the Laffer Curve, when tax rates are low, there is ________relationship between them and tax revenue.

• A) a positive
• B) a negative
• C) sometimes a positive, sometimes a negative
• D) an indeterminate

---

Definitions:

Merchandise

Merchandise refers to the goods that are bought and sold within a retail or wholesale environment.

Cash Discount

A reduction in the invoice price given by the seller to the buyer for quick payment within a specified period.

Merchandise

Products that a company buys to resell to its customers.

Cash Paid

The actual outflow of cash during a period for expenses, investments, and other financial activities.