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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In Portney's analysis of the 1990 Clean Air Act Amendments (CAAA), his estimates suggest that
a. more resources should be allocated to air quality control b. the associated MSB exceed the MSC c. society would be better off with less regulation of air quality d. the TSC outweigh the TSB
In the years before the Civil War, Southern states, because of high protective tariffs, were forced to buy most of their manufactured goods from _________.
Fill in the blank(s) with the appropriate word(s).
As the nominal interest rate increases ________
A) it becomes more costly to hold money instead of bonds B) the quantity of money demanded falls C) the opportunity cost of holding money rises D) all of the above E) none of the above
Changes in real GDP reflect only changes in the amounts being produced
a. True b. False Indicate whether the statement is true or false