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Suppose that in a certain nation, the flat income tax rate of 70 percent falls to 65 percent and as a result the tax base
Suppose that in a certain nation, the flat income tax rate of 70 percent falls to 65 percent and as a result the tax base rises from $500 billion to $575 billion. As a result, tax revenues __________, indicating the nation is on the __________ portion of its Laffer curve.
Group of answer choices
A rise; upward-sloping
B rise; downward-sloping
C fall; upward-sloping
D fall; downward-sloping
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