The Laffer curve indicates which of the following?
A)There is an ideal interest rate that will maximize investment spending.
B)There is an ideal amount of government spending that will lead to full national employment.
C)There is an ideal tax-revenue-maximizing tax rate for government taxes.
D)There is an ideal tariff rate that will maximize exports and minimize imports.

Question

Quizplus · Accepted Answer

The Laffer curve illustrates the concept that there is an optimal tax rate that maximizes government revenue, beyond which increasing tax rates can actually lead to a decrease in revenue.

The Laffer Curve Indicates Which of the Following