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 34 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
Gracias!

jojobee318

  • Member
  • Posts: 298
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

The grey side-gilled sea slug Pleurobranchaea maculata. The discovery of tetrodotoxin in this slug i The grey side-gilled sea slug Pleurobranchaea maculata. The discovery of tetrodotoxin in this slug i
Muscles of Head and Neck Side Muscles of Head and Neck Side
The proportion of obese and extremely obese adults in the United States has increased over the past The proportion of obese and extremely obese adults in the United States has increased over the past
The United States under the Articles of Confederation, 1787 The United States under the Articles of Confederation, 1787
GDP per Capita in the United States, 1870–2009 GDP per Capita in the United States, 1870–2009
A 600-kg car is going around a curve with a radius of 120 m that is banked at an angle of 20° ... A 600-kg car is going around a curve with a radius of 120 m that is banked at an angle of 20° ...
Video: Coronary Heart Disease Animation

For a complete list of videos, visit our video library