Which of the following statements about taxation is TRUE?

Business

1 answer:

xeze [42]2 years ago

4 0

Answer:

A. There is a tax rate at which tax revenues are maximized.

Explanation:

By Laffer Curve definition we can easily understand the relationship between tax rate and tax revenues. It was developed by Arthur Laffer. The Laffer Curve describes that:

with an optimal tax rate government maximizes total tax revenues

there is no tax revenue collection at the two extreme tax rates of 0% and 100%
at the left side of the curve higher tax rates decrease the incentive to work and invest. As a result this leads to to decrease in total tax revenue.

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sammy [17]

Answer:

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3 years ago

You purchased an annual interest coupon bond one year ago that had six years remaining to maturity at that time. The coupon inte

Marat540 [252]

Answer:

The correct answer to the following question will be "8%".

Explanation:

The given values are:

Number of years of maturity = 5 years

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= 10%×1000

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