Multiple Choice
Which of the following scenarios is consistent with the Laffer curve?
A) An increase in the tax rate always increases tax revenue.
B) The tax rate is 1 percent, and tax revenue is very high.
C) The tax rate is 99 percent, and tax revenue is very high.
D) A decrease in the tax rate always increases tax revenue.
Correct Answer:
Verified
Correct Answer:
Verified
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