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If an Increase in Marginal Tax Rates Leads to an Increase

Question 7

Multiple Choice

If an increase in marginal tax rates leads to an increase in tax revenues,then


A) the Laffer curve model of tax revenue is refuted.
B) supply-side economics is refuted.
C) the economy could be below the tax revenue maximizing tax rate.
D) we could be on the upward sloping portion of the Laffer curve.

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