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Refer to the Laffer Curve Above

Question 92

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Refer to the Laffer Curve above. A cut in the tax rate from T<sub>2</sub> to T<sub>1</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 T2 to T1 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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