How do new classical economists differ from Keynesian economists in their assumptions about how government borrowing affects household consumption and borrowing patterns?
Keynesian economists believe households will treat a reduction in taxes financed by borrowing as an increase in income and wealth and will, therefore, increase consumption. New classical economists believe households will reduce consumption and save the tax cut to pay the higher future taxes implied by the government borrowing. According to new classical economists, taxes and debt financing are essentially equivalent.
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A government protection for an inventor that provides the inventor with the right to make use of her invention in any way she desires is
A) a trademark. B) an innovation. C) a patent. D) a copyright.
Compared to regular grocery stores, convenience stores have
a. higher prices and a more limited selection of goods b. higher prices and a greater selection of goods c. lower prices and a more limited selection of goods d. lower prices and a greater selection of goods e. equal prices and an equal selection of goods