The sellers pay the entire sales tax levied on a good when demand is perfectly ________ or supply is perfectly ________

A reduced risk premium __________ the discount factor in the stock price valuation formula, and __________ stock prices

A) raises; raises B) raises; lowers C) lowers; raises D) lowers; lowers

With respect to events like global warming, some economists suggest using falling discount rates because

A) exponential discounting virtually gives no weight to (large) costs incurred far into the future. B) exponential discounting weights (large) costs incurred far into the future heavily. C) events far in the future do not affect us. D) we should not care about costs far in the future.