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    Economic Principles
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    Exam 28: Fiscal Policy and the Business Cycle
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    The Laffer Curve Shows That as the Tax Rate Rises
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The Laffer Curve Shows That as the Tax Rate Rises

Question 65

Question 65

Multiple Choice

The Laffer curve shows that as the tax rate rises, tax revenues:


A) continually rise.
B) continually fall.
C) hold steady.
D) rise and then eventually fall.

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