Author Question: The Laffer curve specifies a. a negative relationship between marginal tax rates and tax revenue. ... (Read 63 times)

nramada · **on:** Jun 30, 2018

The Laffer curve specifies

a. a negative relationship between marginal tax rates and tax revenue.
b. a positive relationship between marginal tax rates and tax revenue.
c. no relationship between marginal tax rates and tax revenue.
d. none of the above.

Question 2

In the modern Keynesian model, velocity

a. varies positively with the level of the interest rate but not with income.
b. varies positively with the level of the interest rate and with income.
c. is constant.
d. varies in the short run but is constant in the long run.
e. none of the above