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According to the Laffer Curve, a Decrease in the Tax

Question 239

Multiple Choice

According to the Laffer curve, a decrease in the tax rate will decrease tax revenue


A) if the economy is on the positively sloped section of the curve.
B) if the economy is on the negatively sloped section of the curve.
C) if the economy is at the 100% tax rate point on the curve.
D) no matter the location of the economy on the curve.

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