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Refer to the Laffer Curve Above

Question 13

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Refer to the Laffer Curve above. A cut in the tax rate from T<sub>5</sub> to T<sub>4</sub> would: A) Decrease tax revenues and support the views of supply-side economists B) Increase tax revenues and support the views of supply-side economists C) Increase tax revenues and support the views of mainstream economists D) Decrease tax revenues and support the views of mainstream economists Refer to the Laffer Curve above. A cut in the tax rate from T5 to T4 would:


A) Decrease tax revenues and support the views of supply-side economists
B) Increase tax revenues and support the views of supply-side economists
C) Increase tax revenues and support the views of mainstream economists
D) Decrease tax revenues and support the views of mainstream economists

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