Purchasing power parity is widely accepted as a better explainer of short-run changes in exchange rates than interest rate effects

The Laffer curve illustrates that

A) there are two tax rates at which zero tax revenues are raised. B) a decrease in tax rates can cause an increase in tax revenues. C) an increase in tax rates can cause an increase in tax revenues. D) an increase in tax rates can cause a decrease in tax revenues. E) all of the above

When the marginal social cost is greater than the private social cost then the good is _____.

a. under consumed b. under produced c. over produced d. over consumed