An economic model that maintains that a higher rate of taxation can result in lower government revenues is called __________.

Name: An economic model that maintains that a higher rate of taxation can result in lower government revenues is called __________.
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Question

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The Laffer curve is an economic theory that suggests there is an optimal tax rate that maximizes government revenue, and that increasing tax rates beyond this point can actually lead to a decrease in total revenue.

An Economic Model That Maintains That a Higher Rate of Taxation