The "universal service" argument often requires that some products be sold at a loss while other products be sold at profits higher than normal

Suppose that in a certain nation the flat income tax rate of 40 percent is reduced to 35 percent and as a result the tax base falls from $400 billion to $375 billion. As a result, tax revenues __________, indicating the nation is on the __________ portion of its Laffer curve

A) rise; upward-sloping B) rise; downward-sloping C) fall; upward-sloping D) fall; downward-sloping

Other things the same, if the exchange rate changes from 30 Thai bhat per dollar to 25 Thai bhat per dollar, then the dollar has

a. appreciated and so buys more Thai goods. b. appreciated and so buys fewer Thai goods. c. depreciated and so buys more Thai goods. d. depreciated and so buys fewer Thai goods.