The laffer curve shows that: a higher tax rate always produces higher tax revenue.I a lower...

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Question

Answer 1

Answer #1

OPTION: a lower tax rate always produces higher tax revenue.

EXPLANATION:

As per Laffer Curve, higher tax rate may discourage people from working resulting in lower tax revenue.

On the other hand, reduction in tax rates may stimulate the economic activities and investment resulting in higher tax revenues.

Answer 2

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