When a Country Is on the Downward-Sloping Side of the Laffer

question 139

Multiple Choice

When a country is on the downward-sloping side of the Laffer curves, a cut in the tax rate will

• A)decrease tax revenue and decrease the deadweight loss.
• B)decrease tax revenue and increase the deadweight loss.
• C)increase tax revenue and decrease the deadweight loss.
• D)increase tax revenue and increase the deadweight loss.

---

Definitions:

Good Relations

The state of having positive, harmonious, and cooperative interactions between individuals or nations.

Tet Offensive

was a series of surprise attacks launched by the Viet Cong and North Vietnamese forces against South Vietnamese and American forces in 1968, significantly affecting public opinion of the Vietnam War.

NLF Fighters

Members of the National Liberation Front, especially referring to the Viet Cong during the Vietnam War, who fought against the United States and South Vietnamese governments.