If property rights for air and water exist, then polluters bear the costs of pollution

When what people pay does not necessarily reflect the real value they put on a good, it is likely that the:

A. good is nonrivalrous. B. good is easily excludable. C. free rider problem exists. D. good will be oversupplied.

If the U.S. inflation rate increases unexpectedly and government revenues, expenditures, and nominal interest rates remain unchanged:

A. both the U.S. real and nominal budget deficits decreases. B. only the U.S. real budget deficit increases. C. both the U.S real and nominal budget deficits increases. D. only the U.S. real budget deficit decreases.