Refer to the Graph

question 84

Multiple Choice

Refer to the graph. If tax rates are between b and d, then supply-side economists are of the opinion that a(n)

• A) increase in tax revenues will increase tax rates.
• B) decrease in tax rates will increase tax revenues.
• C) increase in tax rates will increase tax revenues.
• D) decrease in tax revenues will decrease tax rates.

---

Definitions:

Eighteenth Century

The eighteenth century spans the years from January 1, 1701, to December 31, 1800, and is marked by the Enlightenment, industrial innovations, and significant political revolutions in America and France.

Colonial Town

A settlement established by colonizing countries during the period of exploration.

Strong Influence

A significant impact or authority that one entity or factor has over others, shaping decisions, behaviors, or outcomes.

Stamp Act

A 1765 British law that imposed a tax on the colonies for stamped paper used in official documents, widely unpopular and seen as a direct taxation without colonial representation.