Refer to Figure 4-11 4-11.png. On the Laffer curve shown, which of the following is true? Tax revenue would increase if marginal tax rates were lowered from point C. Tax revenue would decrease if marginal tax rates were lowered from point A. Tax revenues are maximized at a tax rate corresponding to point B. O All of the answer choices are true.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Figure 4-11
LAFFER CURVE
100
C.
A
Tax Revenue
Tax Rate (percent)
Transcribed Image Text:Figure 4-11 LAFFER CURVE 100 C. A Tax Revenue Tax Rate (percent)
Refer to Figure 4-11 4-11.png. On the Laffer curve shown,
which of the following is true?
O Tax revenue would increase if marginal tax rates were lowered from
point C.
Tax revenue would decrease if marginal tax rates were lowered from
point A.
Tax revenues are maximized at a tax rate corresponding to point B.
O All of the answer choices are true.
Transcribed Image Text:Refer to Figure 4-11 4-11.png. On the Laffer curve shown, which of the following is true? O Tax revenue would increase if marginal tax rates were lowered from point C. Tax revenue would decrease if marginal tax rates were lowered from point A. Tax revenues are maximized at a tax rate corresponding to point B. O All of the answer choices are true.
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