A government is considering increasing taxes to boost revenue. What should they consider according to the Laffer Curve?

• A. They should maintain current tax rates regardless of the Laffer Curve.
• B. They should decrease taxes to increase revenue.
• C. They should increase taxes without considering the Laffer Curve.
• D. They should consider whether they are on the upward or downward slope of the Laffer Curve.

Answer: (D)