According to the Laffer Curve, the amount of tax revenue _______when tax rates are ________ and tax rates are ________.
A) increases; low; increased
B) increases; high; increased
C) decreases; low; increased
D) decreases; high; decreased

Question

Quizplus · Accepted Answer

According to the Laffer Curve, tax revenue increases when tax rates are low and increased, as there is room to grow revenue without discouraging economic activity.

According to the Laffer Curve, the Amount of Tax Revenue