The present value of $100 to be paid in two years is less than the present value of $100 to be paid in three years

Suppose government spending rises by $120 billion. It follows that if private expenditures

A) rise by $120 billion, complete crowding out exists. B) fall by $100 billion, incomplete crowding out exists. C) remain unchanged, complete crowding out exists. D) rise by more than $120 billion, complete crowding out exists. E) b and c

What is moral hazard?

A) It refers to the private, self-interested actions that people pursue, which when taken collectively leads to a loss in economic surplus. B) It refers to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off. C) It refers to the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction. D) It refers to the actions people take before they enter into a transaction so as to mislead the other party to the transaction.