The Laffer curve makes the point that cutting a very high marginal tax rate can __________ the tax base enough so that tax revenues __________.
A) lower; rise
B) lower; fall
C) raise; rise
D) raise; fall

Question

Quizplus · Accepted Answer

The Laffer curve illustrates that reducing a very high marginal tax rate can actually expand the tax base, leading to an increase in tax revenues, as lower tax rates can stimulate economic activity and income generation.

The Laffer Curve Makes the Point That Cutting a Very