Use the Figure Below to Answer the Following Question(s)

question 237

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-10
-Refer to Figure 4-11. On the Laffer curve shown, which of the following is true?

• A) Tax revenue would increase if marginal tax rates were lowered from point C.
• B) Tax revenue would decrease if marginal tax rates were lowered from point A.
• C) Tax revenues are maximized at a tax rate corresponding to point B.
• D) All of the above are true.

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