Exhibit 14-2
-Refer to Exhibit 14-2. At a tax rate between 50 percent and 100 percent, a small reduction in the tax rate results in ____ in tax revenue.

Question

Exhibit 14-2 
-Refer to Exhibit 14-2. At a tax rate between 50 percent and 100 percent, a small reduction in the tax rate results in ____ in tax revenue.

Quizplus · Accepted Answer

At a tax rate between 50 percent and 100 percent, according to the Laffer Curve concept, a small reduction in the tax rate can stimulate economic activity and increase the tax base, leading to an increase in tax revenue.

Exhibit 14-2 -Refer to Exhibit 14-2. at a Tax Rate Between 50