If an economist recommends that the government reduce the tax rate in order to increase tax revenues (based on the Laffer curve), she is implicitly assuming that the economy is currently operating at a point
A) inside the Laffer curve.
B) outside the Laffer curve.
C) on the upward-sloping portion of the Laffer curve.
D) on the downward-sloping portion of the Laffer curve.
E) where tax revenues are maximized.
D
Economics
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Explain how the Harrod-Domar growth model, while extremely limited, provides important insights into the growth process
What will be an ideal response?
Economics
When international banks conduct daily trades of different currencies valuing in the millions of dollars
A) they are using the spot market. B) they are using the forward market. C) they are using the futures market. D) they are using the stock markets.
Economics