According to the Laffer Curve, Increases in the Tax Rate

question 155

Multiple Choice

According to the Laffer curve, increases in the tax rate will lead to a(n)

• A) steady decrease in tax revenues.
• B) steady increase in tax revenues.
• C) initial decrease in tax revenues and then an increase in tax revenues.
• D) initial increase in tax revenues and then a decrease in tax revenues.

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