An increase in net taxes (taxes paid by the private sector to the government less transfer payments and interest payments made by the government to the private sector) will:

A budget deficit ________

A) may have stimulative effects on economic activity in the short run B) contributes to lower interest rates in the long run C) is likely to increase future productive capacity in the long run D) all of the above E) none of the above

The law of supply includes the statement "other things being equal." These other things include all of the following EXCEPT

A) resource prices. B) technology. C) producers' expectations. D) consumer's income.