According to the Laffer Curve

Multiple Choice

According to the Laffer Curve

A) Tax revenue always increases as tax rates rise
B) Tax revenue always falls as tax rates rise
C) Tax revenue initially rises with the tax rate but when tax rates get too high revenue begins to fall
D) Tax revenue initially falls with the tax rate but when tax rates reach some optimal level revenue begins to rise
E) Tax revenue is unrelated to the tax rate