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    The Laffer Curve Illustrates the Principle That
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The Laffer Curve Illustrates the Principle That

Question 205

Question 205

Multiple Choice

The Laffer curve illustrates the principle that


A) when tax rates are quite high, reducing tax rates will increase tax revenue.
B) when tax rates are quite low, reducing tax rates will increase tax revenue.
C) when tax rates are quite high, reducing tax rates will decrease tax revenue.
D) increasing tax rates always increases tax revenue.

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