This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the Laffer curve and why is it unlikely that the United States is on the wrong side of it? ... (Read 61 times)

CharlieWard

  • Hero Member
  • *****
  • Posts: 578
on: Jun 29, 2018
What is the Laffer curve and why is it unlikely that the United States is on the wrong side of it?
 
  What will be an ideal response?

Question 2

A bond's coupon payment divided by the bond's current price is equal to the bond's
 
  A) price-earnings ratio. B) dividend yield.
  C) current yield. D) maturity value.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Joy Chen

  • Sr. Member
  • ****
  • Posts: 354
Reply #1 on: Jun 29, 2018
Answer to Question 1

The Laffer curve is the relationship between the tax rate and the amount of tax revenue collected. The amount of tax revenue collected increases with the tax rate only up to a certain tax rate, after which, further increases in the tax rate cause tax revenue to fall. When tax rates are higher than the tax rate that maximizes tax revenue, a country is said to be on the wrong side of the Laffer curve. It is unlikely that the United States is on the wrong side of the Laffer curve because U.S. tax rates are among the lowest in the industrial world and past changes in U.S. tax rates have produced changes in tax revenues in the same direction.

Answer to Question 2

C


CharlieWard

  • Member
  • Posts: 578
Reply 2 on: Jun 29, 2018
Wow, this really help

parker125

  • Member
  • Posts: 332
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Photograph taken during a laparoscopic procedure. The fundus of the uterus is visible below the prob Photograph taken during a laparoscopic procedure. The fundus of the uterus is visible below the prob
Apply forearm to the deep fascia of the back. Stand to one side of the face cradle; use the proximal ... Apply forearm to the deep fascia of the back. Stand to one side of the face cradle; use the proximal ...
Draping for massage of arm. A. Hold arm to side and tuck drape at ribs. B. Lift arm across chest and ... Draping for massage of arm. A. Hold arm to side and tuck drape at ribs. B. Lift arm across chest and ...
Effleurage hand over hand along spinal muscles. Stand at the side directly facing the table and ... Effleurage hand over hand along spinal muscles. Stand at the side directly facing the table and ...
The level of emissions from transport in the United States is twice as high as the global average The level of emissions from transport in the United States is twice as high as the global average
Income Inequality in the United States: 1947–2009 Income Inequality in the United States: 1947–2009
Video: Introduction to Eating Disorders

For a complete list of videos, visit our video library