The Laffer curve implies that tax rates affect:
A) government spending.
B) the tax base.
C) the money supply.
D) neutrality.

Name: The Laffer curve implies that tax rates affect: A) government spending. B) the tax base. C) the money supply. D) neutrality.
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Question

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The Laffer curve illustrates how changes in tax rates can influence the size of the tax base, suggesting that there is an optimal tax rate that maximizes government revenue.

The Laffer Curve Implies That Tax Rates Affect