Refer to the Laffer Curve Above

question 73

Multiple Choice

Refer to the Laffer Curve above. An increase in the tax rate from T₂ to T₃ 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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