The view held by Arthur Laffer and Ronald Reagan that cuts in tax rates would encourage people to increase the quantity of labor they supplied became known as

The market price of a factor of production that is in fixed supply is determined only by demand

Indicate whether the statement is true or false

Why might a nation seek to maintain a pegged exchange rate?

A) It makes business planning easier for firms involved in the global economy. B) It removes the need to intervene in the foreign exchange market. C) It ensures that the exchange rate will remain at its equilibrium. D) It makes their currency more attractive on the foreign exchange market.