The Laffer Curve Illustrates the Principle That

question 205

Multiple Choice

The Laffer curve illustrates the principle that

• A) when tax rates are quite high, reducing tax rates will increase tax revenue.
• B) when tax rates are quite low, reducing tax rates will increase tax revenue.
• C) when tax rates are quite high, reducing tax rates will decrease tax revenue.
• D) increasing tax rates always increases tax revenue.

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