President trump has proposed a lowering of the corporate


Question: President Trump has proposed a lowering of the corporate income lax rale from 35% to 15% and the top personal income tax rate from 39.6% to 15%. When lie unveiled the tax plan. Treasury Secretary Steven Mnuchin argued that the tax cuts would increase economic growth, which would increase government revenues enough to cover the costs of the tax cuts. The basis for this argument comes from the Laffer curve. Briefly describe the Laffer curve, and the theory behind it Analyze in great detail the potential effects of this policy on economic growth, the-federal government budget deficit and debt, the value of the dollar, and Interest rates. Use data and the theories we discussed in the course to support your answer It is expected that you will bring tables of data and/or graphs to the exam to submit with your answer.

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Macroeconomics: President trump has proposed a lowering of the corporate
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