If the economy is on the downward-sloping portion of the Laffer curve, a(an) __________ in tax rates will __________ tax revenues
A) decrease; reduce
B) increase; raise
C) decrease; raise
D) decrease; not change
E) increase; not change
C
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Suppose the economy is currently operating on both the LM curve and the IS curve. Which of the following is true for this economy?
A) Production equals demand. B) The quantity supplied of bonds equals the quantity demanded of bonds. C) The money supply equals money demand. D) Financial markets are in equilibrium. E) all of the above
Which of the following will cause an increase in the demand for the Venezuelan currency, the Venezuelan bolivar?
A) real interest rates in Venezuela fall B) U.S. residents change preferences in favor of goods produced in the United States C) real interest rates in the United States increase D) none of the above