According to the Laffer Curve

question 226

Multiple Choice

According to the Laffer Curve,

• A) at tax rates of zero percent and 100 percent, tax revenues are zero.
• B) higher tax rates increase tax revenues up to a point.
• C) eventually, higher tax rates decrease tax revenues.
• D) a cut in the tax rate can increase tax revenues.
• E) all of the above are true.

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Definitions:

Current Paths

Paths followed by electrical current in a circuit.

Series Circuit

An electrical circuit in which components are connected end-to-end such that current flows through each component in turn without branching.

Current Flow

The passage of electrons through a conductive material, powering electrical devices.

Combination Circuits

Electrical circuits that contain both series and parallel connections within the same circuit.