The new classical view of budget deficits assumes that
a. people view government bonds as an addition to their wealth.
b. individuals do not anticipate the tax liability implied by deficit spending.
c. increased government borrowing will raise the interest rate and retard private borrowing and capital formation.
d. if future taxes (debt) are substituted for current taxes, people will save the reduction in current taxes in order to pay the higher future taxes.
D
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If a nation changes its laws to more actively enforce intellectual property rights, all of the following will most likely take place except
A) more film makers will choose to do business in that country. B) more software companies will choose to export their products to that country. C) foreign investment in that country will increase. D) the black market for intellectual property will become more prosperous in that country.
An increase in the marginal cost of reducing greenhouse gas emissions will lead to lower air quality
a. True b. False