During the Reagan administration, the Laffer curve was used to ague that:
a. the supply-side effects of tax cuts are relatively small.
b. discretionary tax cuts are unwise because they create stagflation.
c. lower income tax rates could increase tax revenues.
d. a "flat tax" would simplify the tax code and stimulate economic growth.
c
Economics
You might also like to view...
The opportunity cost of postponing income to some future time depends on the interest rate
a. True b. False Indicate whether the statement is true or false
Economics
If net exports are reduced, the expenditure schedule will shift
a. downward and equilibrium real GDP will rise. b. upward and equilibrium real GDP will rise. c. downward and equilibrium real GDP will fall. d. upward and equilibrium real GDP will fall.
Economics