According to the Laffer curve, raising the tax rate
A. always increases the amount of tax revenue.
B. always decreases the amount of tax revenue.
C. does not change the amount of tax revenue.
D. might increase, decrease, or not change the amount of tax revenue.
Answer:D
According to the Laffer curve, raising the tax rate
A. always increases the amount of tax revenue. B. always decreases the amount of tax revenue. C. does not change the amount of tax revenue. D. might increase, decrease, or not change the amount of tax revenue.