Refer to the Graph Above

Multiple Choice

Refer to the graph above. Critics of supply-side economics would argue that tax rates are currently between:

A) b and d and that a decrease in tax rates will decrease tax revenues
B) 0 and b and that a decrease in tax rates will decrease tax revenues
C) 0 and b and that a decrease in tax rates will increase tax revenues
D) b and d and that a decrease in tax rates will increase tax revenues