The Laffer curve
A) initially slopes upward as increasing tax rates lead to increasing tax revenue but eventually will slope downward as increasing tax rates lead to decreasing tax revenue.
B) slopes upward throughout its range since increasing tax rates will always lead to increases in tax revenue.
C) is horizontal because tax revenue is independent of the rate of interest.
D) slopes downward throughout its range since increasing tax rates will always lead to decreases in tax revenue.
A
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In the spot foreign exchange market,
A) only dollars, yen, and pounds may be traded. B) only dollars and yen may be traded. C) currencies or bank deposits are exchanged immediately. D) currencies or bank deposits are exchanged at a fixed date (or spot) in the future.