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Refer to the Laffer Curve Above

Question 73

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Refer to the Laffer Curve above. An increase in the tax rate from T<sub>2</sub> to T<sub>3</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. An increase in the tax rate from T2 to T3 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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