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The Laffer Curve
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The Laffer Curve
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6. Introduction to Taxes and Subsidies / The Laffer Curve / Problem 1
Problem 1
What is the impact of a medium-sized tax on the quantity exchanged and tax revenue?
A
It minimizes quantity exchanged and tax revenue.
B
It balances quantity exchanged and maximizes tax revenue.
C
It has no impact on quantity exchanged or tax revenue.
D
It maximizes quantity exchanged and minimizes tax revenue.
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