According to the Laffer curve,when very low marginal tax rates are lowered,tax revenue will

A) decline.
B) stay the same.
C) increase slightly.
D) increase substantially.

Laffer Curve

An economic theory proposing that there is an optimal tax rate that maximizes government revenue without discouraging productivity and investment.

Marginal Tax Rates

The rate of tax applied to the last dollar of income, which varies depending on income level and tax bracket.

Tax Revenue

The income that a government receives from taxation of individuals and businesses.