Asked by Elaiha Ramos on May 06, 2024
Verified
According to the Laffer curve,when very low marginal tax rates are lowered,tax revenue will
A) decline.
B) stay the same.
C) increase slightly.
D) increase substantially.
Laffer Curve
An economic theory proposing that there is an optimal tax rate that maximizes government revenue without discouraging productivity and investment.
Marginal Tax Rates
The rate of tax applied to the last dollar of income, which varies depending on income level and tax bracket.
Tax Revenue
The income that a government receives from taxation of individuals and businesses.
- Identify the distinctions between various economic philosophies and their opinions on the government's function in the economy.
- Assess the efficiency of different economic strategies in distinct economic environments.
Verified Answer
Learning Objectives
- Identify the distinctions between various economic philosophies and their opinions on the government's function in the economy.
- Assess the efficiency of different economic strategies in distinct economic environments.
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