During the Reagan administration, the Laffer curve was used to argue 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.
Answer: C
Economics
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According to Nobel laureate Ronald Coase, firms exist in order to
A) maximize transactions costs. B) minimize transactions costs. C) maximize transactions. D) employ workers.
Economics
All of the following would increase the natural rate of unemployment EXCEPT
A) union activity restricts the mobility of labor. B) government licensing of teachers restricts employment. C) a mismatch of skills and jobs. D) a downturn in the economy.
Economics