According to the Laffer Curve, when tax rates are low, there is ________relationship between them and tax revenue.
A) a positive
B) a negative
C) sometimes a positive, sometimes a negative
D) an indeterminate

Question

Quizplus · Accepted Answer

The Laffer Curve suggests that when tax rates are low, increasing them will lead to an increase in tax revenue, indicating a positive relationship between tax rates and tax revenue at lower rates.

According to the Laffer Curve, When Tax Rates Are Low