Based on the Laffer Curve, a Cut in the Tax

question 60

Multiple Choice

Based on the Laffer Curve, a cut in the tax rate from 100 percent to a rate lower than the maximum-revenue rate will:

• A) Decrease real GDP
• B) Increase tax revenues
• C) Decrease tax revenues
• D) Have no effect on tax revenues

---

Definitions:

Cultural Differences

Variations in the customs, beliefs, practices, and social behavior of different societies or communities.

Herbal Remedies

Natural medicine prepared from plants and used to prevent or treat illnesses or disorders.

Spiritualist Healer

An individual who uses spiritual or religious practices to facilitate the healing of physical or emotional ailments.

Septic Shock

A severe and potentially fatal condition that occurs when an infection leads to dangerously low blood pressure and abnormalities in cellular metabolism.