According to the Laffer Curve, a Decrease in the Tax

question 239

Multiple Choice

According to the Laffer curve, a decrease in the tax rate will decrease tax revenue

• A) if the economy is on the positively sloped section of the curve.
• B) if the economy is on the negatively sloped section of the curve.
• C) if the economy is at the 100% tax rate point on the curve.
• D) no matter the location of the economy on the curve.

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