The Laffer Curve suggests that multiple choice 1 monetary policy always works in the long run. higher marginal tax rates bring in less revenue. fiscal policy always works in the long run. at some tax rate between 0 and 100 percent, tax revenues are maximized.

Respuesta :

Answer:

some tax rate between 0 and 100 percent, tax revenues are maximized.

Explanation:

The Laffer Curve is a supply side economic theory developed by  Arthur Laffer in 1974.

The curve depicts the relationship between tax rates and tax revenue

According to this theory, higher income tax rate reduces the incentive of labour to work and invest due to the fact that labour would have to pay higher tax. This means that at some point, increase in the tax rate would decrease government revenue rather than increase it.

The theory submits that there is an optimal tax rate at which tax income is maximised. Once this point is surpassed, increase in tax rate would reduce government revenue