According to the Laffer Curve, If the Economy Is on the Positively

Multiple Choice

According to the Laffer curve, if the economy is on the positively sloped section of the curve, then

A) both an increase and a decrease in tax rates will increase tax revenue.
B) a decrease in the tax rate will increase tax revenue.
C) an increase in the tax rate will increase tax revenue.
D) both an increase and a decrease in tax rates will decrease tax revenues.