According to the Laffer Curve, If the Economy Is on the Positively

question 137

Multiple Choice

According to the Laffer curve, if the economy is on the positively sloped section of the curve, then

• A) both an increase and a decrease in tax rates will increase tax revenue.
• B) a decrease in the tax rate will increase tax revenue.
• C) an increase in the tax rate will increase tax revenue.
• D) both an increase and a decrease in tax rates will decrease tax revenues.

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Definitions:

United States

A country located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Semantic Memory

A component of long-term memory that processes ideas and concepts not drawn from personal experience, encompassing knowledge of facts, meanings, and language usage.

Cognitive Abilities

The mental capabilities involved in performing tasks, problem-solving, and making decisions, such as perception, memory, and reasoning.

Aging

The process of becoming older, which involves a series of biological, psychological, and social changes over time.