Which of the following is an argument of Arthur Laffer,the supply-side economist?
A)That present tax rates are too high but a cut in tax rates will lead to a drop in tax revenues.
B)That present tax rates are too low and should be increased.
C)That an increase in tax rates will force people to work harder.
D)That a cut in tax rates will lead to higher tax revenues.

Question

Quizplus · Accepted Answer

Arthur Laffer's argument is that a cut in tax rates will stimulate economic growth and lead to an increase in tax revenues, which is known as the Laffer Curve. This is a fundamental principle of supply-side economics. Therefore, option D is the correct answer.

Which of the Following Is an Argument of Arthur Laffer,the