Some economists believe that financing deficit spending by increasing taxes will lead to a lower level of national consumption and a higher level of national savings than deficit spending. The reason is
A. people will forgo private consumption now as society substitutes government goods for private goods.
B. people believe that they can consume the government provided goods and have future generations pay the bill.
C. the interest rate on the debt will increase.
D. that people do not realize that taxes have increased also.
Answer: A
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a. True b. False Indicate whether the statement is true or false
In a mixed strategy situation, a player does best by unpredictably mixing his strategies in accordance with probabilities that depend on the strategies of the others
Indicate whether the statement is true or false
At the equilibrium price, the quantity of the good that buyers are willing and able to buy
a. is greater than the quantity that sellers are willing and able to sell. b. exactly equals the quantity that sellers are willing and able to sell. c. is less than the quantity that sellers are willing and able to sell. d. there is no scarcity.
The fish in the ocean are
a. allocated efficiently because there are no limitations on entry into the ocean fisheries business. b. scarce, but only because of the highly restrictive regulations imposed by various nations. c. a commonly owned, open access resource and therefore they are often over-exploited. d. privately owned and therefore they are allocated efficiently.