Refer to the Laffer Curve $T _ { 2 } \text { to } T _ { 1 }$

question 48

Multiple Choice

Refer to the Laffer Curve. A cut in the tax rate from T $T _ { 2 } \text { to } T _ { 1 }$ would

• A) decrease tax revenues and support the views of supply-side economists.
• B) increase tax revenues and support the views of supply-side economists.
• C) increase tax revenues and support the views of mainstream economists.
• D) decrease tax revenues and support the views of mainstream economists.

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A psychological technique where agreement to a small request increases the likelihood of agreement to a larger request later.

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the act of conforming to or following rules, standards, or demands placed upon an individual by authority, society, or internal standards.

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