Draw a curve that shows the relationship between the tax rate and the amount of tax revenue collected.

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Part 1

What is the curve that shows the relationship between the tax rate and the amount of tax revenue collected?

The relationship between the tax rate and the amount of tax revenue collected is called the _______ curve.

This curve shows that _______.

A.

maximum tax rate;

taxes can never be too low

B.

Laffer;

tax cuts can increase tax revenue

C.

tax revenue;

a higher tax rate brings greater tax revenue

D.

Reagan;

tax cuts can increase tax revenue