Refer to the graph below. If tax rates are between b and d, then supply-side economists are of the opinion that a(n):
A. Increase in tax revenues will increase tax rates
B. Decrease in tax rates will increase tax revenues
C. Increase in tax rates will increase tax revenues
D. Decrease in tax revenues will decrease tax rates
B. Decrease in tax rates will increase tax revenues
You might also like to view...
The supply of loanable funds, or "national saving," is equal to:
A. income ? consumption. B. income ? consumption ? taxes. C. income ? consumption ? government spending. D. income ? consumption ? government spending ? taxes.
An individual seller in perfect competition will not sell at a price lower than the market price because
A) the seller can sell any quantity she wants at the prevailing market price. B) demand for the product will exceed supply. C) the seller would start a price war. D) demand is perfectly inelastic.