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In a bid to be re-elected president of the United States, you promise both a lower tax rate and greater tax revenue. Would you be
In a bid to be re-elected president of the United States, you promise both a lower tax rate and greater tax revenue. Would you be able to back up this promise with economic reasoning? Use the Laffer curve, shown here, to support your answer. Choose one: A. Yes, but only if the current tax rate is in region I of the Laffer curve. B. Yes, but only if the current tax rate is in region II of the Laffer curve. C. No, you could not keep this promise regardless of where the current tax rate is on the Laffer curve. D. Yes, but only if the current tax rate is exactly t*, at the midpoint of the Laffer curve
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