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When a Country Is on the Downward-Sloping Side of the Laffer

Question 69

Multiple Choice

When a country is on the downward-sloping side of the Laffer curve,what will cutting tax rates do


A) lower tax revenues and increase deadweight loss
B) lower both tax revenues and deadweight loss
C) increase tax revenues and decrease deadweight loss
D) increase both tax revenues and deadweight loss

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